CIL Unveils Ambitious ₹16,000 Crore Investment Plan for FY26, Focus on Green and Thermal Energy

In a strategic push to diversify its energy portfolio and enhance operational efficiency, Coal India Limited (CIL) has drawn up a massive capital expenditure (capex) plan worth ₹16,000 crore for the financial year 2025-26 (FY26). This ambitious plan underscores the company’s commitment to both renewable energy (RE) and thermal power projects, signaling a dual approach to meet India’s growing energy demands while transitioning toward cleaner energy sources.

Focus on Renewable Energy

CIL is increasingly positioning itself as a key player in India’s energy transition journey. The company has earmarked a significant portion of the capex for renewable energy ventures, including solar power projects. This aligns with the central government’s emphasis on increasing the share of renewables in the national energy mix.

According to officials, solar energy projects across multiple states are being planned to reduce the carbon footprint and contribute to India’s target of achieving 500 GW of non-fossil fuel capacity by 2030. The capex will also fund the development of necessary infrastructure, such as power evacuation systems and grid integration.

Continued Investment in Thermal Power

Despite the push for renewables, CIL continues to bet big on thermal power, acknowledging its importance in ensuring base load stability in India’s power grid. The state-owned coal mining giant is developing coal-based thermal power plants, including expansion of existing facilities and establishment of new ultra-supercritical units. These projects aim to improve efficiency and reduce emissions from coal-based energy.

The ongoing construction of thermal power projects through subsidiaries such as NLC India Ltd and NTPC’s joint ventures is expected to absorb a significant chunk of the capex in FY26. This is seen as a short- to medium-term strategy to balance energy reliability with the longer-term renewable transition.

Infrastructure, Mining & Technology

Beyond energy generation, the capex will also support:

• Modernization of coal mining infrastructure, including coal handling plants and automated loading systems

• Investment in mechanized transportation to improve logistics and reduce environmental impact

• Technological innovation and digitization to improve productivity and safety in mining operations

Strategic Vision

This comprehensive capex plan reflects CIL’s strategic shift from being just a coal producer to a broader energy company. The dual investment in renewables and thermal represents a pragmatic approach, ensuring energy security while adapting to changing global and domestic energy policies.

Industry experts view this move as a necessary evolution, especially given the growing scrutiny over fossil fuel dependence and the opportunities in clean energy markets. With India expected to remain a coal-dependent economy for at least the next two decades, CIL’s hybrid focus could position it as a stabilizing force during the country’s energy transition.