The Ministry of Coal has reported strong growth in coal production from captive mines during the monsoon season, with output rising despite challenging weather conditions. Captive mines, which are operated by private companies for their own use, have increased their contribution to India’s coal supply steadily over the past year. This expansion matters because captive and commercial mines together now supply roughly one-fifth of the country’s total coal output.
Production figures and capacity growth
Captive mine production reached 184 million tonnes in FY 2025-26, up from 167.44 million tonnes the previous year, representing a 10.10% increase. When combined with commercial mines, which produced around 26 million tonnes, the two segments together generated 210 million tonnes against 190.95 million tonnes in FY 2024-25.
India’s total domestic coal production in FY 2025-26 stood at 1,039 million tonnes, marking the second consecutive year above one billion tonnes. Captive and commercial mines account for approximately 21% of this national output.
In the first five months of the current financial year (up to 10 September 2026), captive mines produced 68.98 million tonnes compared to 65.78 million tonnes in the same period last year, a growth of about 5%. This gain is particularly noteworthy because it occurred during the monsoon months, when mining and transportation face maximum difficulty due to heavy rainfall.
Dispatch performance has also improved, with 75.68 million tonnes dispatched against 71.43 million tonnes previously, an increase of 5.94%. Nine captive and commercial mines are expected to begin operations during FY 2026-27, bringing a combined capacity of 20.67 million tonnes. Three of these mines have already started production this year with a capacity of 7.51 million tonnes, while six others are expected to commence soon.
Based on this expansion, captive mine production is projected to exceed 190 million tonnes in FY 2026-27, with the combined captive and commercial segment expected to surpass 228 million tonnes during the financial year.
What this means for you
Increased coal production from captive mines helps reduce India’s dependence on coal imports and supports energy security. Better monsoon-season output means more stable electricity supply throughout the year. Expansion in this sector also creates employment opportunities in coal mining and related industries across mineral-rich regions.