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Ministry of Coal

From Coal Availability to Energy Security: CIL Strengthens Coal Supply and Distribution to Power Sector

PrelimsMainsGS3EnvironmentEconomy
Source-grounded summary

The Ministry of Coal reports that Coal India Limited (CIL) has strengthened its coal supply and distribution to India's power sector in the first half of FY 2026-27. CIL's total coal offtake reached 384.2 Million Tonnes (MT), representing a 7.6% increase compared to the previous fiscal year, driven by enhanced evacuation, inventory utilisation, and liquidated pithead stocks amounting to 63 MT. Power sector despatches stood at 302.8 MT (accounting for nearly 79% of total offtake), supporting an increase in domestic coal-based power generation to 640.05 Billion Units (BU). CIL's distribution strategy relies on Fuel Supply Agreements, linkage mechanisms, and infrastructure upgrades such as First Mile Connectivity and mechanised close-loop evacuation capacity.

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