Coal India Sets 900 MT Target for FY26, Plans ₹16,000 Crore Capex for Growth and Diversification

Coal India Ltd (CIL) is aiming to supply 900.24 million tonnes (MT) of coal in FY2025-26, a rise of over 18% from the previous year. This move is part of the company’s plan to meet the country’s growing power demand and reduce reliance on imported coal.

Power Sector Remains the Focus

• In FY25, power generation rose by 5%, reaching 1,826 billion units, with coal-based generation making up 1,299 BU.
• Last year, CIL met 93% of the power sector’s demand by supplying 616.17 MT.

₹16,000 Cr Capex Plan for FY26

To support its supply growth, CIL has allocated ₹16,000 crore in capital expenditure for:

• Rail infrastructure upgrades
• Coal gasification and coal-to-liquid (CTL) projects
• Solar and thermal energy projects
• Coalbed methane (CBM) extraction
• Reviving fertiliser plants

Cleaner Coal and Asset Monetisation

CIL is exploring cleaner coal technologies like:

• Underground mining
• Coal washing
• Blending
• Coal gasification
• CBM extraction

The company also monetised the Dugda Coal Washery in Jharkhand (2 MTPA capacity) for ₹504 crore, the first such monetisation in India under the build-own-operate model.

Diversifying for the Future

CMD P. M. Prasad highlighted in his annual address that CIL is working to future-proof its business by reducing dependence on thermal coal and tapping new revenue sources such as:

• Supplying coking coal to the steel industry
• Participating in critical mineral exploration
• Investing in renewable energy projects

Also Read: SEBI Proposes to Reduce Retail Quota to 25% in IPO of Over ₹5,000 Crore!

Coal India Share Price Movement

As of 10:00 AM, August 5, 2025, Coal India share price (NSE: COALINDIA) is trading at ₹375.70, with a market capitalisation of ₹2.32 lakh crore. The stock has seen a 52-week high of ₹543.55 and a low of ₹349.25, reflecting moderate volatility. The day's trading range so far has been between ₹374.90 and ₹380.70. 

Conclusion

Coal India is aligning its operations with India’s energy goals by targeting a record 900 MT coal supply in FY26 and investing ₹16,000 crore to support infrastructure and cleaner technologies. With a strong focus on power sector supply, diversification, and asset monetisation, the company is gearing up to ensure reliable coal availability while preparing for a low-carbon future.

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