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.