Coal India Limited (CIL), the country’s largest coal producer, paid ₹5,832.69 crore to the central and state governments in March 2025—down 4.7% from ₹6,126.42 crore in March 2024.
For the full financial year 2024-25, CIL’s total contribution to the government exchequer was ₹60,959.52 crore, reflecting a modest 1.2% increase over the ₹60,197.8 crore paid in FY24.
Among the biggest beneficiaries were Jharkhand (₹14,047.44 crore), Odisha (₹12,979.20 crore), Madhya Pradesh (₹11,351.84 crore), and Chhattisgarh (₹11,303.76 crore). These states generate significant income from coal through royalties, the District Mineral Foundation (DMF), and the National Mineral Exploration Trust (NMET), with coal mining playing a vital role in local development.
In terms of output, CIL produced 781.1 million tonnes (MT) of coal in FY25—falling short of its 838 MT target by about 7%, but still registering a 1% growth over the previous year.
India remains the world’s second-largest coal producer and consumer. While coal continues to dominate electricity generation, the sector faces ongoing challenges like environmental concerns, delays in mining clearances, and reliance on coal imports for steel production.
To address this, the government is pushing for private participation in mining and cleaner coal technologies. Though renewables are on the rise, coal is expected to stay a key part of India’s energy landscape for the foreseeable future.