Delhi: Coal India Limited (CIL) has strengthened coal supplies to India’s power sector during the first half of the financial year 2026-27, supported by improved coal evacuation, better coordination between production and dispatch, and the utilisation of accumulated pithead stocks.
The company’s total coal offtake reached 384.2 million tonnes (MT) during April–September FY2026-27, compared with 357 MT in the corresponding period of FY2025-26, registering an increase of 27.2 MT or 7.6%.
The improvement gained further momentum in the second quarter, with coal offtake rising to 186.04 MT from 166.04 MT in the corresponding quarter of the previous financial year, representing year-on-year growth of approximately 12.05%.
CIL’s September 2026 performance also reflected the stronger supply trend, with total coal supplies increasing to 61.20 MT from 54.40 MT in September 2025, marking growth of 12.5%.
As one of India’s largest coal producers and a key supplier to the power sector, CIL plays an important role in supporting electricity generation and strengthening the country’s energy security.
CIL Coal Offtake Rises 7.6% in First Half of FY2026-27
CIL recorded a substantial improvement in coal offtake during the first six months of FY2026-27. Total offtake increased by 27.2 MT compared with the corresponding period of the previous year, reflecting stronger coal movement through its supply network.
The second quarter recorded a more pronounced improvement, with offtake reaching 186.04 MT against 166.04 MT in Q2 FY2025-26, representing growth of 12.05%.
September continued this upward trend, with total coal supplies reaching 61.20 MT, compared with 54.40 MT a year earlier.
CIL also liquidated around 63 MT of pithead coal stocks during the first half of FY2026-27. The use of accumulated inventory helped support consumer supplies alongside current production, highlighting the importance of stock management in maintaining coal availability.
Key coal supply figures:
- H1 FY2026-27 offtake: 384.2 MT
- H1 FY2025-26 offtake: 357 MT
- Year-on-year growth: 7.6%
- Q2 FY2026-27 offtake: 186.04 MT
- September 2026 total supplies: 61.20 MT
- Pithead stock liquidation in H1: Around 63 MT
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Power Sector Receives Nearly 79% of CIL’s Coal Offtake
The power sector remains the primary focus of CIL’s coal distribution strategy, accounting for nearly four-fifths of the company’s total coal offtake.
During H1 FY2026-27, coal dispatches to the power sector reached 302.8 MT, compared with 285.4 MT in the corresponding period of FY2025-26. This represented an increase of 17.4 MT or 6.1%.
The improvement continued in the second quarter. CIL supplied 148.20 MT of coal to the power sector in Q2 FY2026-27, compared with 133.50 MT in Q2 FY2025-26, registering growth of approximately 11%.
The increase in power-sector dispatches indicates that the growth in overall coal offtake is translating into higher supplies to power plants. This is particularly important for supporting electricity generation and maintaining the reliability of the country’s energy supply chain.
September 2026 Sees 10.63% Growth in Power-Sector Coal Supplies
September 2026 emerged as a strong month for CIL’s coal distribution, with supplies to the power sector increasing to 48.90 MT from 44.20 MT in September 2025.
The increase of 4.70 MT represented year-on-year growth of 10.63%. Meanwhile, the company’s overall coal supplies rose by 12.5% during the month.
Daily dispatch figures also highlighted the sustained pace of coal movement towards the end of September and during the first few days of October.
According to the provided data, power-sector dispatches reached:
- 28 September 2026: 1.74 MT
- 29 September 2026: 1.79 MT
- 30 September 2026: 1.71 MT
- 1 October 2026: 1.75 MT
- 2 October 2026: 1.87 MT
- 3 October 2026: 1.81 MT
These figures indicate that CIL maintained substantial daily dispatch volumes during the closing phase of the monsoon period and into the post-monsoon operating season.
The sustained movement of coal is important for ensuring that power plants receive adequate fuel as production and logistics operations adjust to seasonal conditions.
Domestic Coal-Based Power Generation Increases 9.9%
The impact of improved coal availability is also reflected in domestic coal-based electricity generation.
Domestic coal-based power generation increased to 640.05 billion units (BU) during H1 FY2026-27, compared with 582.5 BU in the corresponding period of FY2025-26. This represented an increase of approximately 57.55 BU or 9.9%.
Power generation figures:
- H1 FY2026-27: 640.05 BU
- H1 FY2025-26: 582.5 BU
- Increase in generation: Approximately 57.55 BU
- Year-on-year growth: 9.9%
The rise in generation highlights the continued importance of domestic coal in meeting India’s electricity requirements. Reliable coal supplies help power plants maintain operations and support electricity availability across the country.
For CIL, the ability to move coal efficiently from mines to power plants remains a key part of its contribution to national energy security.
Improved Logistics and Distribution Strengthen Coal Supply Chain
CIL’s coal distribution system has evolved beyond a predominantly linkage-based framework towards a more diversified and responsive supply network.
Fuel Supply Agreements (FSAs) and linkage mechanisms continue to serve as the principal channels for meeting power-sector requirements. Other market-based channels can help address short-term demand and provide additional flexibility.
The company has also been working towards improving supply coordination through:
- Linkage rationalisation to improve coal allocation.
- Digital systems and consumer-facing portals.
- Better logistics management and dispatch coordination.
- Improved utilisation of accumulated pithead coal stocks.
- Greater coordination between production, evacuation and consumer demand.
These measures help connect production, inventory, evacuation capacity and consumer demand. By managing these elements more effectively, CIL aims to improve the responsiveness and efficiency of its coal supply chain.
The availability of adequate pithead stocks has also supported supplies during periods when production is being progressively increased following the monsoon season.
CIL Expands Mechanised Coal Evacuation Infrastructure
Strengthening coal evacuation infrastructure is an important part of CIL’s strategy to improve the reliability of supplies.
The company is investing in First Mile Connectivity (FMC) projects, rapid loading systems and digital monitoring to facilitate faster and more efficient coal movement from mines to consumers.
According to the information provided, CIL has 46 coal handling plant (CHP)-silos with a combined mechanised, closed-loop evacuation capacity of 432 MT. The company is also considering additional CHP-silos at upcoming greenfield mines.
Key evacuation infrastructure initiatives include:
- First Mile Connectivity: Improving the movement of coal from mines to transportation networks.
- CHP-silos: Supporting mechanised and efficient coal evacuation.
- Rapid loading systems: Facilitating faster loading and dispatch.
- Digital monitoring: Improving visibility and coordination across the supply chain.
- Greenfield mine infrastructure: Considering additional CHP-silos at upcoming projects.
Mechanised evacuation systems can help improve loading efficiency, streamline coal transportation and reduce delays in moving coal from production sites. These investments are intended to strengthen the supply network and support more predictable deliveries to power plants and other consumers.
As coal demand continues to be closely linked to electricity generation, efficient evacuation infrastructure remains essential for converting production capacity into reliable consumer supplies.
CIL Focuses on Assured Coal Supply and Energy Security
The improvement in coal offtake and power-sector dispatches during FY2026-27 highlights the importance of an integrated approach to coal production, stock management, transportation and distribution.
However, the broader objective extends beyond increasing supply volumes. Consistent availability, predictable deliveries and attention to coal quality are also important for meeting consumer requirements.
CIL’s focus on expanding evacuation infrastructure, improving digital monitoring and strengthening coordination across the supply chain is aimed at supporting this objective.
The company’s key priorities include:
- Maintaining reliable coal supplies to power plants.
- Improving production and dispatch coordination.
- Strengthening mechanised coal evacuation infrastructure.
- Using pithead stocks efficiently to meet consumer demand.
- Supporting domestic coal-based electricity generation.
- Improving supply predictability and overall distribution efficiency.
With production expected to build up during the post-monsoon period and investments in logistics continuing, the company’s supply performance will remain significant for India’s power sector.
By improving the movement of coal from mines to power plants, CIL aims to support reliable electricity generation and contribute to the country’s wider energy-security requirements.
About Coal India Limited (CIL)
Coal India Limited (CIL) is a Maharatna Central Public Sector Enterprise under the Ministry of Coal, Government of India. Established in 1975, it is one of the world’s largest coal-producing companies and operates through subsidiaries across major coal-producing regions of India. CIL supplies coal to power plants, steel producers, cement manufacturers and other industrial consumers, with the power sector accounting for the largest share of its coal distribution. Its operations play a significant role in supporting domestic energy production and India’s energy security.
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