New Delhi: Coal India Limited (CIL) plans to invest nearly ₹1 lakh crore over the coming years in coal evacuation infrastructure and gasification projects as it works to achieve its target of producing 1 billion tonnes of coal annually by FY30.
Coal India Chairman B. Sairam said the investment programme will focus on strengthening rail connectivity, modernising coal handling systems and expanding value-added utilisation of coal. The initiatives are aimed at improving logistics, reducing supply bottlenecks and supporting the company’s long-term production plans.
₹48,000 Crore for Rail Connectivity and Coal Evacuation
Of the planned investment, Coal India intends to allocate around ₹48,000 crore towards rail connectivity and mechanised coal evacuation infrastructure.
The spending is expected to help modernise coal transportation and handling systems, reduce logistical bottlenecks and improve the movement of coal from mines to consumers.
Key areas of focus include:
- Expansion and strengthening of rail connectivity
- Mechanised coal handling systems
- Modernisation of coal evacuation infrastructure
- Improving transportation efficiency and reducing transit times
The infrastructure push is particularly important as Coal India seeks to increase production while ensuring that higher output can be efficiently transported to industrial and power-sector consumers.
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₹50,000 Crore Planned for Coal Gasification
Coal India also plans to invest around ₹50,000 crore in three coal gasification projects in partnership with joint-venture partners.
Coal gasification is expected to help the company diversify the utilisation of coal and move towards higher-value applications.
The planned gasification investments, combined with spending on evacuation infrastructure, take the overall proposed investment close to the ₹1 lakh crore mark.
Coal India Targets 1 Billion Tonne Production by FY30
The investment programme is closely linked to Coal India’s goal of achieving 1 billion tonnes of annual coal production by FY30.
Improved rail connectivity, mechanised handling and expanded evacuation infrastructure are expected to help the company manage higher production and address transportation constraints.
The company believes that strengthening its logistics network will be crucial for maintaining reliable coal supplies to industrial and power-sector consumers.
Focus on Mechanisation and Faster Coal Movement
Coal India is prioritising mechanisation and improved transportation systems to increase the efficiency of its operations.
The planned infrastructure investments are intended to reduce bottlenecks and improve the movement of coal from mines to consumers.
Officials expect the combination of enhanced rail links and mechanised evacuation systems to support higher production while reducing delays in coal transportation.
Coal India Absorbing Rising Mining Costs
The investment plans come amid rising operating costs for the mining company.
Industrial diesel and ammonium nitrate prices have increased, partly due to the impact of the West Asia conflict, putting pressure on mining costs.Coal India has been absorbing these short-term cost pressures rather than passing them on through higher coal prices.
At the same time, the company is continuing to pursue long-term capital projects aimed at improving operational efficiency and competitiveness.
Gasification to Support Coal Diversification
Coal gasification forms an important part of Coal India’s strategy to diversify coal utilisation beyond conventional applications.
The company is working with joint-venture partners on three major gasification projects while also examining opportunities for additional projects with state governments.
These initiatives are expected to support value-added coal utilisation and contribute to India’s broader efforts to strengthen domestic energy security.
About Coal India Limited
Coal India Limited (CIL) is a Maharatna public sector enterprise under the Ministry of Coal, Government of India, and the world’s largest coal-producing company. Headquartered in Kolkata, CIL operates numerous coal mines across India and plays a major role in meeting the country’s energy requirements. The company is now expanding into other mineral segments, including critical minerals and iron ore, as part of its diversification strategy.
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