Coal India Ltd plans a Rs 1 trillion (tn) investment in coal evacuation and gasification as it aims to scale production and shore up logistics, the company chairman B. Sairam said in an interview. The programme is intended to support a target of one billion tonnes of annual output by fiscal year 2030. The state-run miner has prioritised infrastructure to ease evacuation constraints and support demand.

Of the planned spending, the company will allocate Rs 480 billion (bn) to rail connectivity and mechanised coal evacuation, while it will commit Rs 500 billion (bn) with joint-venture partners to three coal gasification projects. The Rs 480 bn figure reflects a conversion from Rs 48,000 crore and the Rs 500 bn figure reflects Rs 50,000 crore; these outlays together approach Rs 980 billion, close to the one trillion (tn) headline plan. These outlays are intended to modernise handling and reduce transit times for coal movements.

The investment push comes as rising industrial diesel and ammonium nitrate prices linked to the West Asia conflict have increased mining costs, which the company has absorbed rather than passing on through higher coal prices. The miner is also exploring additional projects with the state governments of Chhattisgarh, Odisha and Maharashtra to expand gasification and logistics capacity. Company executives view the capital spending as crucial to long-term competitiveness.

Officials project that improved mechanisation and rail links, combined with gasification investments, will underpin the drive to one billion tonnes by FY30 and help to mitigate supply bottlenecks. The company intends to continue absorbing short-term cost pressures while pursuing capital projects with joint-venture partners to support long-term output goals. Management expects the programme to address bottlenecks and support reliable supplies to industrial users.