New Delhi: Coal India Limited (CIL) is stepping up its diversification strategy with plans to invest nearly ₹50,000 crore across coal gasification, critical minerals and renewable energy projects. The move is aimed at reducing India’s import dependence while creating new growth opportunities for the state-run coal producer.
Coal India Chairman B. Sai Ram said the company is preparing for changing energy requirements by expanding into new businesses while strengthening the utilisation of domestic coal.
Coal India Expands Focus Beyond Coal Mining
Coal India is seeking to reduce its dependence on conventional coal mining by developing businesses linked to future energy and industrial requirements.
A major focus of the company’s diversification strategy is coal gasification, which can convert coal into useful products such as synthesis gas and support the production of chemicals and other industrial inputs.
The company expects coal gasification to help:
- Reduce dependence on imported chemicals and natural gas.
- Improve domestic energy security.
- Promote value addition to India’s coal resources.
- Create a domestic coal gasification ecosystem.
- Develop new growth opportunities for Coal India.
The company is also exploring partnerships with technology providers and other companies to accelerate its coal gasification projects.
Read also: Coal India Records 5.5% Growth in August FY27 Coal Supplies at 60.60 MT, NRS Up 9.6%
Coal India’s ₹25,000 Crore Odisha Gasification Project
Coal India’s first commercial coal gasification project has moved into the execution stage in Lakhanpur, Odisha.
The project is being developed by Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture between Coal India and Bharat Heavy Electricals Limited (BHEL).
The project involves an investment of more than ₹25,000 crore and is expected to produce around 6.60 lakh tonnes of ammonium nitrate annually.
Mechanical work for the project has commenced, marking a major step towards establishing commercial-scale coal gasification capacity in India.
Two More Coal Gasification Projects Under Development
Apart from the Odisha project, Coal India is working on two additional coal gasification projects in partnership with major energy companies.
These include:
- A project in West Bengal in partnership with GAIL.
- A project in Maharashtra in partnership with BPCL.
Both projects are currently at the tender stage and are part of Coal India’s broader strategy to build a strong coal gasification ecosystem.
Coal India Eyes Overseas Lithium and Critical Mineral Assets
Coal India is also expanding into the critical minerals sector as demand for minerals required for clean energy technologies continues to grow.
The company has already acquired five blocks in India containing graphite and rare metals.
CIL is also exploring opportunities to acquire critical mineral assets overseas, particularly lithium resources.
The company is in discussions regarding mining opportunities in:
- Chile
- Argentina
- Australia
Chile is a particular focus, with Coal India exploring the acquisition of lithium mining assets and entering into non-disclosure agreements (NDAs) with several international partners.
To support its overseas operations and international expansion, the company has also established a new branch in Singapore under the name ‘CIL Global’.
Coal India Targets 9.5 GW Renewable Energy Capacity by 2030
Coal India’s diversification strategy also includes a significant expansion into renewable energy.
The company has set a target of achieving 9.5 GW of renewable energy capacity by 2030.
As part of this plan, CIL is developing new solar power projects and exploring the integration of battery energy storage systems (BESS) with renewable projects.
Energy storage is expected to help manage fluctuations in renewable power generation and improve the reliability of electricity supply.
Diversification Strategy Aims to Create New Growth Engines
Coal India’s planned investments in gasification, critical minerals and renewable energy represent a broader shift in its business strategy.
The company is looking to leverage its existing strengths while entering sectors that are expected to play a larger role in India’s future energy and industrial ecosystem.
The initiatives are aimed at supporting:
- Lower import dependence
- Energy security
- Critical mineral security
- Cleaner energy expansion
- Domestic value addition
- Long-term business diversification
With nearly ₹50,000 crore planned across these areas, Coal India is positioning itself beyond its traditional role as a coal producer and towards a more diversified energy and resources company.
About Coal India Limited
Coal India Limited (CIL) is a Maharatna Central Public Sector Enterprise under the Ministry of Coal, Government of India. It is the world’s largest coal-producing company and contributes significantly to India’s energy requirements. Alongside coal mining, CIL is expanding into coal gasification, renewable energy and critical minerals as part of its diversification strategy.
Read also: Coal India Plans First Overseas Trading Office in Singapore to Expand Critical Minerals Business
