State-owned Coal India Limited (CIL) has entered into a non-binding Memorandum of Understanding (MoU) with Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd (UPRVUNL) to establish a 500 megawatt (MW) solar power project in Uttar Pradesh. The agreement, signed on May 5, 2025, in Lucknow, is part of CIL's initiatives to expand its presence in the green energy sector and to meet the growing energy demands of the state. 

The MoU also includes provisions for exploring additional collaborative opportunities between the two entities in the future.

This development aligns with Coal India's broader strategy to diversify its energy portfolio and contribute to India's renewable energy goals. In April 2025, CIL had signed a pact with Damodar Valley Corporation (DVC) to set up an ultra-supercritical power plant in Jharkhand with a total investment of Rs 165 billion.

Coal India accounts for over 80 per cent of the domestic coal output. In the financial year 2024–25, CIL produced 781.1 million tonnes of coal, nearly 7 per cent less than the company's target for the year.