State-owned Coal India (CIL) achieved an output of 33.1 million tonnes (MT) in July as against the target of 35.80 MT.
The development comes at a time when the Maharatna firm is drawing flak from across the quarters for missing its output targets.
In the first four months of the current fiscal, the company's production was 141.34 MT, while the target for the period was 148.81 MT, the company said in a filing to the BSE.
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Coal and Power Minister Piyush Goyal had earlier asked Coal India to ramp up production from its existing mines.
CIL, which accounts for 80 per cent of domestic coal production, missed its output target of 482 million tonnes for 2013-14, producing 462 million tonnes during the period.
Production fell short of target because of various reasons, including lack of environment clearance to coal mining projects.
In 2012-13, the company produced 452.5 million tonnes of coal, falling short of the 464 MT target.
Coal India's production target for 2014-15 has been set at 507 MT, while the offtake target is 520 MT.