State-owned CIL, the country's largest coal producer, on Friday reported a 9.7 per cent drop in coal production to 56.1 million tonnes (MT) in April, raising concerns over meeting the country's surging energy demands.

The slump in coal production is significant as coal remains the backbone of the country's power generation, accounting for over 70 per cent of electricity output.

Coal India Ltd (CIL) produced 62.1 MT of coal in April 2025-26.

With peak summer demand pushing power consumption to record highs, the production shortfall could strain supplies to thermal plants and industries, potentially leading to higher imported coal costs, the industry leaders said.

Coal India's offtake, or sales to customers, also dropped by two per cent to 63.2 MT in April over 64.5 MT in the corresponding month of the previous fiscal, according to the provisional data.

Coal India subsidiaries, which recorded a decline in production, include Eastern Coalfields Ltd (ECL), Bharat Coking Coal Ltd (BCCL) and Western Coalfields Ltd (WCL), while South Eastern Coalfields Ltd (SECL) and Central Coalfields Ltd (CCL) reported positive growth, CIL said in a filing to the BSE.

However, the company did not give the reasons for the drop in both production and offtake.

The coal behemoth contributes to 80 per cent of total domestic coal production and 75 per cent of total coal-based generation.

CIL contributes to 55 per cent of total power generation and meets 40 per cent of the primary commercial energy requirements of the country.

The production dip comes at a time when the country's peak power demand soared to 255.85 GW on Monday, reaching the record level for the second time within three days, driven by intense heatwave conditions that pushed usage of cooling appliances like air-conditioners and desert coolers.

The surge in power demand, amid severe heatwave conditions across the north, central and western India, resulted in a significant rise in energy consumption, as users relied on air-conditioners and cooling devices to beat the heat.

According to the power ministry data, peak power demand was recorded at 255.85 GW (nearly 256GW) on Monday, which was a tad below the highest-ever peak demand recorded at 256.11 GW on Saturday.

The production of the maharatna firm dropped by 1.7 per cent to 768.1 million tonnes in the just-concluded FY26. The company produced 781.1 million tonnes of coal in FY'25.

According to the provisional data, Coal India's output in March dropped to 84.5 MT from 85.8 MT in the year-ago period.

The government had earlier said that India's domestic coal production is steadily matching consumer demands, with Coal India implementing robust measures to secure uninterrupted dry fuel for all sectors, amid recent tensions in West Asia.

Published on May 1, 2026