Page 58 - Policy Economic Report - April 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

On this occasion, the Minister also inaugurated the official website of BCGCL, marking a step forward in
enhancing transparency, accessibility, and stakeholder engagement. The platform will serve as a
centralised hub for disseminating key information, including project updates and tenders, fostering
greater openness in project implementation.

The signing of this lease agreement is expected to significantly accelerate project execution and ensure
timely completion within the stipulated schedule. The Coal to Ammonium Nitrate Project at Lakhanpur is
an important industrial initiative that reflects India’s progress in technology, policy reforms, and efforts
towards achieving self-reliance, while contributing to the nation’s long-term industrial growth and
economic resilience.

In the present global scenario, marked by evolving geopolitical dynamics and supply chain uncertainties,
such initiatives assume greater significance in strengthening domestic capabilities. The project aligns with
the vision of Viksit Bharat, focusing on innovation, resource efficiency, and sustainable industrial
development. It reinforces India’s commitment to reducing import dependence, enhancing value addition
to its natural resources, and building a resilient, future-ready economy.

Ministry of Coal Reports Record-Breaking Production and Dispatch in Captive and Commercial Mines
for FY 2025-26

The Ministry of Coal has marked FY 2025–26 as a watershed moment in India’s coal sector, with captive
and commercial mining achieving a milestone never reached before. For the first time, combined
production and dispatch from these blocks have surpassed the 200 Million Tonnes (MT) mark, marking a
decisive leap in scale, capability, and contribution to the Nation’s energy landscape.

As on March 31, 2026, coal production from captive and commercial mines reached 210.46 MT,
registering a robust year-on-year growth of 10.22% over 190.95 MT in the previous fiscal. Dispatches also
witnessed a strong uptick, touching 204.61 MT and marking a 7.35% increase compared to 190.42 MT in
FY 2024–25. These record-breaking figures reflect improved operational efficiency, strengthened logistics,
and the sector’s growing capacity to meet the nation’s rising energy demand.

Significant Milestones Achieved in FY 2025–26

• Historic 200+ MT Milestone: Production and dispatch from captive/commercial blocks
crossed 200 MT for the first time, reflecting sustained growth and operational excellence.

• Operationalization of New Blocks: During FY 2025–26, 12 captive and commercial coal blocks
were operationalized through the grant of Mine Opening Permission (MOP), significantly
expanding the operational coal mining base by adding more than 86 MT of annual production
capacity.

• Accelerated Production Commencement: Further, 7 blocks commenced coal production within
the same financial year, demonstrating faster project execution and improved regulatory
coordination.

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