Coal India Limited (CIL), which supplies nearly four-fifths of India’s coal to the power sector, has strengthened its production and distribution during the first half of the financial year 2026-27. The Ministry of Coal announced that improved evacuation systems, better coordination between production and despatch, and use of stored coal at mining sites have increased coal availability for power generation across the country.
Key facts
- CIL’s total coal offtake in H1 FY 2026-27: 384.2 Million Tonne, up from 357.0 MT in H1 FY 2025-26 (increase of 7.6%)
- Power-sector coal supply in H1 FY 2026-27: 302.8 MT, up from 285.4 MT in H1 FY 2025-26 (increase of 6.1%)
- Q2 FY 2026-27 power-sector supply: 148.20 MT, compared with 133.50 MT in Q2 FY 2025-26 (growth of 11%)
- September 2026 power-sector supply: 48.90 MT, against 44.20 MT in September 2025 (increase of 10.63%)
- Domestic coal-based electricity generation in H1 FY 2026-27: 640.05 BU (Billion Units), up from 582.5 BU in H1 FY 2025-26 (increase of 9.9%)
- Pithead coal stocks utilised in H1 FY 2026-27: 63 MT
- Mechanised evacuation capacity from CHP-silos: 432 MT
- Average daily power-sector coal despatch in September 2026: approximately 1.63 MT per day
What has improved in coal supply
CIL has strengthened its ability to deliver coal to power plants through three main changes. First, evacuation infrastructure has been expanded, allowing more coal to move from mines to power stations faster. Second, production and despatch have been better synchronized, meaning coal is extracted and sent out in closer coordination with demand. Third, CIL has made strategic use of coal accumulated at pithead locations—the points where coal is extracted and prepared for transport—liquidating 63 MT of such stocks during the first half of the year to meet immediate power-sector needs.
The improvement accelerated as the year progressed. In the second quarter, CIL’s total offtake grew by 12.05% compared with the same quarter last year. September 2026 saw particularly strong performance, with total coal supplies rising by 12.5% and power-sector supplies increasing by 10.63% compared to September 2025.
Why this matters for electricity generation
Nearly 79% of CIL’s coal offtake during the first half went to the power sector, demonstrating that power generation remains the top priority in coal distribution strategy. This priority has translated into measurable gains in electricity production. Domestic coal-based power generation increased by 57.5 BU (or 9.9%) in the first half of 2026-27 compared with the same period last year, showing that improved coal supply is directly supporting the country’s electricity availability.
During September 2026, CIL maintained daily power-sector coal despatch averaging around 1.63 MT per day, with the final week of the month showing intensified supply efforts, reaching 1.74 to 1.79 MT per day. This sustained performance through the monsoon period and into October demonstrates CIL’s ability to maintain high-volume supplies despite seasonal challenges.
How CIL’s distribution system works
CIL supplies coal to power plants through two main channels. Fuel Supply Agreements and linkage mechanisms handle the bulk of regular requirements, providing long-term certainty for power stations. Market-based channels allow flexibility for short-term needs. The Ministry noted that linkage rationalization, digital tracking systems, consumer-facing online portals, and improved logistics coordination have made the supply chain more responsive and efficient.
The integration of production planning, inventory management, evacuation infrastructure, and customer demand into a single coordinated system has been crucial. Rather than treating these as separate functions, CIL now manages them as interconnected parts of one supply chain.
Infrastructure developments supporting supply
CIL operates 46 coal handling plants with silos (CHP-silos) that provide 432 MT of mechanised, closed-loop evacuation capacity. These facilities use automated systems to load coal onto trains and trucks without spillage, improving both efficiency and environmental standards. The Ministry stated that CIL plans to develop additional CHP-silos at newly developed mining sites to further expand evacuation capacity.
What this means for you
Improved coal supply to power plants should support more reliable and consistent electricity availability across the country. Citizens and businesses depending on steady power supply may benefit from reduced generation shortfalls. Power companies facing coal shortages will have more assured supplies, potentially affecting electricity tariffs and service continuity. Students and job seekers may find increased opportunities in coal mining, logistics, and power generation sectors as CIL continues to invest in infrastructure and operations.
What happens next
CIL plans to continue investments in First Mile Connectivity—infrastructure linking mines to main transport routes—and rapid loading systems. The company will expand digital monitoring and control systems to track coal movement from extraction to delivery. Development of additional CHP-silos at upcoming greenfield mining sites is underway to sustain the gains achieved and ensure that coal supply becomes not only higher but also more predictable and quality-conscious.