Kolkata: Coal India Limited (CIL) has reported a strong capital expenditure (capex) performance in the first half of the financial year 2026–27, spending ₹7,966 crore between April and September 2026. This represents a 27% increase compared with ₹6,283 crore incurred during the corresponding period of the previous financial year.
The company achieved 109% of its planned first-half capital expenditure outlay of ₹7,286 crore. Its expenditure during the six-month period also accounted for more than 48% of its annual capex target of ₹16,500 crore.
The strong performance reflects CIL’s continued focus on strengthening mining infrastructure, expanding operational capabilities, acquiring land, procuring heavy equipment and advancing diversification initiatives.
Coal India Achieves 109% of H1 FY27 Capex Target
Coal India’s capital expenditure during April–September FY27 exceeded its planned outlay, demonstrating progress in implementing its infrastructure and development projects.
The key capex figures for the first half of FY27 are:
- Total capital expenditure: ₹7,966 crore
- Year-on-year growth: 27%
- H1 planned outlay: ₹7,286 crore
- Achievement against H1 target: 109%
- Full-year capex target: ₹16,500 crore
- Share of annual target achieved: More than 48%
The expenditure is directed towards strengthening the company’s mining operations, improving coal handling and evacuation infrastructure, and supporting the development of new business segments.
Mine Infrastructure Development Receives ₹2,152 Crore
Mine infrastructure development accounted for the largest share of Coal India’s capital expenditure during the first half of FY27, with an investment of ₹2,152 crore.
The investment focused on developing and upgrading key infrastructure required for efficient coal production, handling and transportation.
Major areas of investment included:
- Railway sidings and corridors to improve coal transportation and evacuation.
- Coal handling plants (CHPs) to strengthen coal handling capacity.
- Silos to support efficient coal loading and movement.
- Weighbridges to facilitate the measurement and management of coal dispatches.
These infrastructure improvements are expected to support more efficient coal evacuation and strengthen the company’s ability to meet supply requirements.
Land Acquisition and Mine Development Remain Key Priorities
Coal India spent ₹2,033 crore on land acquisition during H1 FY27, making it one of the company’s largest capital expenditure categories.
Land acquisition is essential for the expansion of mining operations and the development of associated infrastructure. The company also spent more than ₹1,000 crore on mine development to support project expansion and operational readiness.
These investments are intended to facilitate the development of mining projects and strengthen the infrastructure required for sustained coal production.
Coal India Invests ₹1,394 Crore in Plant and Machinery
Capital expenditure on Plant and Machinery (P&M) reached ₹1,394 crore during the first half of FY27.
The expenditure included investments in Heavy Earth Moving Machinery (HEMM), washeries and other plant equipment required for mining and coal processing operations.
Of the total P&M expenditure, ₹452 crore was allocated to the procurement of HEMM. These machines are essential for large-scale mining activities, including excavation, material handling and the movement of overburden.
Investment in modern machinery is expected to strengthen operational capacity and improve efficiency across CIL’s mining operations.
Diversification Projects Receive Over ₹739 Crore
Alongside its core coal mining activities, Coal India continued to invest in diversification projects, with more than ₹739 crore spent during H1 FY27.
The investments covered several emerging and strategic business areas, including:
- Solar energy: Supporting the expansion of renewable energy initiatives.
- Critical minerals: Advancing opportunities in strategically important mineral resources.
- Coal gasification: Supporting the development of technologies that convert coal into useful products and fuels.
- Thermal power generation: Expanding the company’s presence in electricity generation.
These initiatives form part of CIL’s broader efforts to diversify its business portfolio and explore opportunities beyond conventional coal mining.
Four Major Segments Account for Over 79% of Total Capex
Mine infrastructure development, land acquisition, plant and machinery, and diversification projects were the principal components of Coal India’s capital expenditure during the first half of FY27.
Together, these four categories accounted for more than 79% of the company’s total capex during the period.
The investment distribution highlights CIL’s focus on strengthening its core mining operations while supporting long-term growth through diversification.
The emphasis on infrastructure, equipment and project development is expected to enhance operational capabilities and support the company’s production and coal supply objectives for FY27.
Coal India’s Capex Strategy Supports Operational Growth
Coal India’s capital expenditure performance in H1 FY27 reflects its continued focus on infrastructure development, operational efficiency and business expansion.
By exceeding its planned first-half outlay, the company has made substantial progress towards its annual investment target of ₹16,500 crore. Investments in mine infrastructure, land acquisition and heavy machinery are expected to support its core operations, while spending on solar energy, critical minerals, coal gasification and thermal power generation will contribute to its diversification efforts.
The company will continue to focus on deploying capital across priority projects to strengthen mining capabilities and support its operational and supply targets for the ongoing financial year.
About Coal India Limited
Coal India Limited (CIL) is a Maharatna public sector undertaking under the Ministry of Coal, Government of India. Headquartered in Kolkata, the company is the world’s largest coal-producing company and operates through multiple coal-producing subsidiaries across India. CIL plays a significant role in meeting the country’s coal requirements for power generation and other industrial activities while pursuing infrastructure development and business diversification.
