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Coal India earmarks Rs 16,000 cr capex for FY26

08 Aug 2025

 Coal India’s (CIL) capital expenditure (capex) plan for 2025-26 (FY26) stands at Rs 16,000 crore, which will have a significant portion planned towards foray into critical minerals, coal gasification, thermal power plants and renewable energy portfolio, according to a BSE filing.

“If required, we may scale it up further. Coal transportation and evacuation infrastructure — which includes setting up rail sidings and corridors, coal handling plants/silos and roads — account for 35 percent of the capex at Rs 5,622 crore. Land, a major capex head, is next at Rs 2,382 crore. Heavy earth moving equipment, washeries and other plant and machinery make up Rs 1,950 crore. Other heads such as mine development, solar, JVs and pithead power plants consume the remaining capex,” the company said in its annual report.

In adherence to the government’s commitment towards reducing India’s carbon footprint, CIL has also set a Net Zero target of 3 gigawatts (GW) by FY28 and further intends to ramp up its renewable capacity by another 6.5 GW by FY30.

“We managed to control costs and delay major capital spend by using our equipment more efficiently and planning operations better. Smarter mine schedules, improved equipment utilisation, and quicker work cycles — aided in controlled costs and timed capex infusion,” the report said.

CIL achieved 94.56 percent of its capacity utilization target in FY25 and had a capex of Rs 21,776 crore during the previous fiscal. CIL kept investing in key areas to support future capacity and smoother coal movement. A large part of the spending was directed towards First Mile Connectivity projects, high-capacity mining equipment, and expanding railway network.