New Delhi: Coal India Limited (CIL), India’s largest coal-producing PSU, has significantly accelerated its transition towards renewable energy, investing ₹961 crore in solar power initiatives by the end of January FY2026. The capital expenditure (capex) marks a major milestone in the company’s diversification strategy aimed at becoming a Net-Zero energy player by FY2028.
The latest investment represents 132% of the progressive capex target of ₹729 crore set for January 2026. Notably, it has already surpassed the full FY26 solar capex target of ₹957 crore, underlining CIL’s aggressive push into clean energy.
Strong Year-on-Year Growth in Solar Capex
CIL’s solar investment has recorded substantial year-on-year growth.
- Capex stood at ₹412 crore during the corresponding period last year.
- The current ₹961 crore spend reflects a 2.33 times increase, showcasing rapid scaling of renewable initiatives.
The company has also achieved improved cost efficiency. The cost of setting up 1 MW of solar capacity has reduced to ₹4–4.5 crore, compared to the earlier ₹5.5–6 crore per MW, making expansion more economically viable.
A senior company executive stated that solar power ranks high on CIL’s diversification roadmap, emphasizing its importance in ensuring the company’s long-term relevance in India’s evolving energy landscape.
Read also: Coal India Q3 FY26 Results: Net Profit Falls 16% to ₹7,166 Cr; Interim Dividend ₹5.50 Declared
Targeting 3,000 MW Renewable Capacity by FY2028
CIL has set an ambitious goal of installing 3,000 MW of renewable solar capacity by FY2028 as part of its Net-Zero strategy.
Current and Upcoming Capacity Additions
- Installed renewable capacity: 247 MW (as of December 2025)
- Expected capacity by end of current fiscal: 675 MW
Major upcoming solar projects include:
- 100 MW solar plant in Patan, Gujarat
- 300 MW solar plant in Khavda, Gujarat
Expansion Through Joint Ventures and Bidding
Beyond its standalone projects, CIL is actively exploring an additional 2,000 MW of renewable energy capacity through subsidiaries and joint ventures.
Key projects include:
- 875 MW solar plant in partnership with Rajasthan Rajya Vidyut Utpadan Nigam Limited
- 500 MW solar project with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited
Additionally, bids have been invited for a 20 MW floating solar plant in Gorakhpur, and CIL is actively participating in Tariff-Based Competitive Bidding (TBCB) tenders across multiple states.
The company is also evaluating opportunities in Battery Energy Storage Systems (BESS) to strengthen renewable integration and grid stability.
Strategic Shift Towards Clean Energy
Coal India’s aggressive solar expansion signals a strategic pivot from being solely a coal mining major to evolving into a diversified energy company. By increasing renewable investments and improving cost efficiencies, CIL is aligning itself with India’s broader clean energy and decarbonisation goals.
About Coal India Limited (CIL)
Coal India Limited (CIL) is a Maharatna Central Public Sector Enterprise under the Ministry of Coal, Government of India. Headquartered in Kolkata, CIL is the world’s largest coal producer and plays a critical role in meeting India’s energy demands. In recent years, the company has been actively diversifying into renewable energy, including solar power, as part of its long-term sustainability and Net-Zero roadmap.
Read also: Coal India Commissions First 5 MW Solar Power Plant on OB Dump, Cuts 8,190 Tonnes of CO₂ Annually
