The contribution of the mining and quarrying sector to India’s real Gross Value Added has declined from 2.6 percent in Fiscal 2019 to 2.0 percent in Fiscal 2025, despite overall economic growth.
Capacity expansion in the coal sector is increasingly dependent on contract mining, while internal constraints and a limited pool of capable private contractors pose challenges in scaling production.
Coal project development in India requires multiple approvals across central and state authorities, and despite procedural reforms, project execution continues to face delays.
Land acquisition remains a major hurdle, particularly for large projects involving forest land and scheduled areas.
Coal logistics face persistent bottlenecks due to long transportation distances, inadequate rail infrastructure, congestion, and dependence on railways for a significant share of coal movement.
Key Strengths
The Company is the largest coking coal producer in India, accounting for 58.50 percent of domestic coking coal production in Fiscal 2025.
It holds 7.91 billion tonnes of coking coal resources, making it the only domestic source of prime coking coal in India.
A diversified coal product portfolio includes coking coal, non-coking coal, washed coal, and washed power coal, catering to power, steel, cement, fertilizer, and other industrial sectors.
Sales are diversified across industries, with the power sector being the largest contributor, followed by the steel industry, providing revenue stability.
The Company holds mining lease and rights over 28,830.95 hectares, with key leases revalidated until March 31, 2050, ensuring long-term resource security.
Mines are strategically located in the Jharia and Raniganj coalfields, supported by established infrastructure and proximity to major transportation networks.
The Company operates five coking coal washeries with a total installed capacity of 13.65 million tonnes per annum, enhancing coal quality and marketability.
Significant capital has been committed toward modernization and expansion of washeries, with a total sanctioned and committed outlay of ₹11,598.32 million.
Strong parentage of Coal India Limited provides strategic oversight, technical expertise, financial support, and institutional credibility.
The Company has demonstrated consistent financial performance with no long-term debt and disciplined capital expenditure.
An experienced management team and a workforce of over 31,000 employees support operational stability, safety, and regulatory compliance.
