Coal India Ltd, the country's biggest producer of thermal coal, had output of 42.72 million tonnes of coal in June against a target of 43.31 million tonnes, helping to ease the glut accumulating at the company's mines.
The company produced 45.53 million tonnes of coal in May.
Its deliveries for June stood at 44.96 million tonnes, against a target of 47.52 million tonnes.
Coal India has boosted output at a record pace over the past two years and the government has urged state power generation companies to buy local coal and reduce imports.
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