Coal India Struggles with Fiscal Contributions Amid Production Boost

State-owned Coal India Ltd's fiscal contributions dropped marginally to Rs 28,930.27 crore in the first half of FY25, despite a boost in coal production. Major recipients included Jharkhand and Odisha. The coal sector has been crucial for state revenues, although Coal India missed its annual production target.

State-owned Coal India Ltd has seen a minor decrease in its contributions to the government exchequer, slipping by 0.6 percent to Rs 28,930.27 crore during the first half of the current fiscal year compared to the same period last year.

Data from the coal ministry reveals that CIL, responsible for over 80 percent of India's coal production, paid Rs 29,122.13 crore in levies during April to September of FY24. In September alone, levies dropped by 11.1 percent to Rs 4,335.24 crore compared to the previous year.

Jharkhand received the highest share of these funds, followed by Odisha, Chhattisgarh, Madhya Pradesh, and Maharashtra. Coal mining continues to serve as a pivotal source for state revenue, and Coal India is expected to reach an output of 838 MT for FY25.

(With inputs from agencies.)