Coal India Spends ₹961 Crore on Solar, Surpasses FY26 Capex Target

Coal India Limited (CIL) has stepped up its diversification efforts, doubling its capital expenditure on solar projects in the current financial year.

The state-owned miner announced it has incurred ₹961 crore in capital expenditure on augmenting solar capacity till January FY26. The spending is more than double the ₹412 crore deployed during the comparable period last year.

The outlay represents 132% achievement against the progressive target of ₹729 crore set till January 2026. In doing so, Coal India has also crossed its full-year solar capex target of ₹957 crore for FY26.

The Kolkata-headquartered Public Sector Undertaking (PSU) said solar power remains a key pillar in its diversification strategy as it prepares for a gradual shift in India’s energy mix.

How Has Coal India Accelerated Its Solar Spending This Year?

The sharp increase in capital expenditure signals a more active push into renewable energy compared with previous years.

A senior company executive said solar remains central to its cleaner energy plans, adding that the company is laying groundwork to stay relevant in the country’s evolving power landscape. Coal India is also participating in solar auctions across multiple states.

The PSU has indicated that solar will form an important component of its broader diversification portfolio. The company has been increasingly active in Tariff-Based Competitive Bidding (TBCB) tenders for solar power development.

The cost of setting up solar projects has come down over time. At present, installing one megawatt (MW) of capacity typically costs around ₹4-4.5 crore, compared with ₹5.5-6 crore per MW earlier.

What Is Coal India’s Renewable Capacity Roadmap?

Coal India has outlined a plan to build 3 GW of renewable capacity by FY28.

Till December 2025, the company and its subsidiaries had commissioned about 247 MW. This figure is expected to increase to around 675 MW by the close of the current financial year.

Two projects in Gujarat are part of the near-term additions, including a 100 MW plant at Patan and a 300 MW facility at Khavda.

Separately, the company is examining projects totalling about 2 GW through subsidiaries and joint ventures. These include an 875 MW project with Rajasthan Rajya Vidyut Utpadan Nigam and a 500 MW project with Uttar Pradesh Rajya Vidyut Utpadan Nigam, which are planned in stages.

Bids have also been invited for a 20 MW floating solar project in Gorakhpur.

Battery energy storage systems are being looked at as well. Storage solutions can help balance supply when solar generation fluctuates during the day.

Coal India has said these initiatives are aligned with its longer-term net-zero plans, even as coal continues to form the bulk of its current operations.

Read More: Coal India Q3 FY26: Profit Drops 16%

Can Solar Reshape Coal India’s Future?

Coal India accounts for nearly 80% of the country’s coal production. At the same time, it has been adding renewable capacity alongside its core mining business.

Crossing the FY26 solar capex target ahead of schedule shows that spending in this segment has picked up pace.

Coal remains central to India’s power supply, but renewable additions are increasing across the sector. Coal India’s solar investments allow it to maintain a presence in that space while continuing its main operations.

For now, solar forms a growing part of the company’s portfolio, even though coal continues to drive revenues.

Sources:

ET

Business Standard

The Hindu