State owned Coal India Limited (CIL) reported its highest ever coal dispatches for the month of July 2026, supplying 64.19 million tonnes (MT) of coal, an increase of 18.38% over the same period last year. The company also recorded an 8.44% rise in production, reaching 50.36 MT, as demand from the power sector remained strong amid a weaker-than-normal monsoon.
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Power Sector Drove Record Coal Offtake
According to the company, July’s coal supply surpassed the previous record of 60.5 MT, achieved in FY25. During the first four months of FY27 (April-July), cumulative coal supplies reached a record 262.04 MT, up 6.9% year-on-year and higher than the previous best of 259.4 MT. Coal supplied to the power sector, CIL’s largest consumer segment, rose 18% to 49.77 MT in July from 42.35 MT a year earlier.
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Weak Monsoon Increased Dependence on Coal
The increase in production and dispatches comes as below-normal monsoon rainfall has reduced hydropower generation across the country. Although rainfall improved during July after a dry June, cumulative seasonal rainfall remained around 13% below normal, leading to greater dependence on coal-fired power plants to meet electricity demand.
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Thermal Power Continued to Meet Rising Electricity Demand
India’s peak power demand touched 270 gigawatts (GW) in July, reflecting sustained electricity consumption during the monsoon season. Coal-based power generation increased 9.49% year-on-year to 463,995.61 million units (MU) during 1st April to 30th July 2026, while generation from coal fired plants in July 2026 alone rose 13.08%. The latest figures indicate that thermal power continues to play a central role in maintaining grid stability as hydropower output remains under pressure.
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