New Delhi: Amid a subdued coal demand in the first quarter of FY2025–26, Coal India Ltd (CIL) has reaffirmed its commitment to major infrastructure investments by earmarking ₹5,622 crore — the largest component of its proposed ₹16,000 crore capital expenditure for the year — for coal evacuation and transportation infrastructure.
Despite a decline in Q1 performance, the PSU remains steadfast in its goal of achieving 1 billion tonnes (BT) coal production by FY2028–29, while simultaneously expanding its renewable energy portfolio.
Evacuation Infrastructure: A Key Focus Area
Coal India is prioritizing mechanised coal evacuation infrastructure under its First Mile Connectivity (FMC) initiative. This includes:
- Development of rail sidings, dedicated corridors, and coal handling plants (CHPs)
- Installation of silos, and construction of all-weather roads
- Integration of automated coal loading systems
An official stated that this year’s evacuation-focused capex aims to boost evacuation capacity from 151 MTPA to 994 MTPA by FY2028–29 — a key enabler for meeting the company’s ambitious production goals.
Sluggish Q1 Performance but Signs of Recovery
CIL’s production declined 3% to 183.32 million tonnes in the April–June 2025 quarter, compared to the same period last year. Similarly, offtake dropped 4% to 191 million tonnes, reflecting a slowdown in industrial demand.
However, company officials indicate early signs of demand recovery, citing reforms and operational streamlining for coal consumers. “We remain on track for long-term production targets despite short-term fluctuations,” the official noted.
Beyond Coal: Diversification and Renewables
Coal India is not just investing in evacuation infrastructure but also channeling funds into:
- Land acquisition
- Heavy Earth Moving Machinery (HEMM)
- Coal washeries
- Renewable energy projects
In FY2024–25, CIL commissioned 114 MW of solar capacity, taking its cumulative installed solar base to 209.08 MW by March 2025. This renewable push supports the government’s decarbonization goals and helps the PSU hedge against future risks from fossil fuel dependence.
Long-Term Strategy Anchored in Infrastructure and Sustainability
Despite a challenging Q1, Coal India’s ongoing capital investments reflect a balanced strategy combining traditional energy output with sustainable transition pathways.
Officials reiterated that capex in infrastructure — especially evacuation — is essential not only for capacity but also to reduce logistics bottlenecks, ensure supply reliability, and improve cost-efficiency in coal delivery.
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About Coal India Limited (CIL)
Coal India Limited is a Maharatna Central Public Sector Enterprise under the Ministry of Coal. It is the world’s largest coal-producing company and plays a pivotal role in meeting India’s energy requirements. CIL is now diversifying into critical minerals and clean energy segments while
