Coal India Sets Rs 160 Billion Capex for Expansion

20 Aug 2025 CW Team

Coal India Limited (CIL) is advancing its production and evacuation infrastructure plans under its capital expenditure programme for FY 2025-26, despite subdued coal demand in the first quarter.

The company has allocated Rs 56.22 billion — around 35 per cent of its proposed Rs 160 billion capex for FY26 — towards transportation and evacuation projects. These include rail sidings, corridors, coal handling plants, silos and road networks. The investments are critical to scaling up mechanised coal evacuation capacity from the present 151 million tonnes per annum (MTPA) to 994 MTPA by FY 2028-29 under its first mile connectivity initiative, an official confirmed.

The state-run miner, which produces more than 75 per cent of India’s coal, reported a dip in performance in the June quarter, with production falling 3 per cent to 183.32 million tonnes and offtake slipping 4 per cent to 191 million tonnes. However, officials pointed to early signs of recovery following reforms for coal consumers.

CIL reiterated its long-term goal of achieving 1 billion tonnes of annual production by FY 2028-29, underpinned by India’s strong economic outlook. Beyond evacuation infrastructure, the company continues to invest in land acquisition, heavy earth moving machinery, washeries and renewable energy projects to bolster supply security and diversify its portfolio.

On the renewable side, CIL commissioned 114 MW of solar capacity in FY 2024-25, bringing its total installed solar capacity to 209.08 MW as of March 2025. The company aims to expand this to 3 GW by FY 2027-28 as part of its decarbonisation strategy.

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