NO PLAN TO HIKE COAL PRICES, SAYS REDDY AS PRODUCTION CROSSES DEMAND
New Delhi, Mar 24, 2026 : Union Coal and Mines Minister G Kishan Reddy on Monday described India’s coal production of one billion tonnes for the second consecutive year as a “success story,” while noting that storage constraints have led to a temporary halt in production at some locations.
Speaking to reporters, Reddy said the country currently lacks the capacity to store such a large volume of coal. “For the second consecutive time, we have produced one billion tonnes of coal.
This is a success story. We have produced so much coal that we do not even have space to stock it. That is why production had to be stopped at some places. Our coal production now exceeds the country’s demand,” he said.
He also clarified that no decision has been taken to increase coal prices and stressed that they should remain stable. Reddy added that district administrations and state governments must ensure that prices do not rise. “No such decision has been taken to hike coal prices. Coal prices should not increase. If they have increased anywhere, the District Collector and the state government should take responsibility and put a stop to it.
We have taken proactive measures
to ensure prices remain stable,” he said.
His remarks come amid concerns over a global energy crisis linked to the ongoing West Asia conflict.
Earlier in the day, Prime Minister Narendra Modi assured the Lok Sabha that India has sufficient coal stocks to meet rising electricity demand during the summer season.
Addressing concerns about the impact of the conflict on agriculture, the Prime Minister said the government has made adequate arrangements for fertilisers, despite India’s dependence on imports from West Asia.
“A major question is the impact of the war on agriculture. Our farmers have ensured strong grain reserves, and India has adequate food stocks. It is our endeavour that Kharif sowing proceeds smoothly.
The government has made adequate arrangements for fertilisers. In the past as well, we did not allow the burden of global crises to fall on farmers,” he said.
He added that six urea plants have been commissioned over the past decade, increasing domestic production capacity by 76 lakh metric tonnes.
Concerns over fertiliser supply intensified earlier this month after QatarEnergy announced a halt in the production of certain downstream products, including urea, amid the ongoing conflict.
Highlighting the challenge of rising electricity demand, Modi said, “With the summer season approaching and temperatures set to rise, electricity demand will increase. At present, adequate coal stocks are available at power plants across the country.”
The Prime Minister also pointed to ethanol blending and railway electrification as measures to reduce dependence on imported fuel. “Due to ethanol blending, we are saving imports of about 4.5 crore barrels of oil annually. Railway electrification has also brought major benefits. Without it, an additional 180 crore litres of diesel would have been required every year. The metro network has also expanded from less than 250 km in 2014 to over 1,100 km now,” he said.