CIL Sets 900MT FY26 Target, Rs 16,000 Cr Capex to Drive Growth

• CIL targets 900.24 MT coal supply in FY26, with 74% for the power sector
• ₹16,000 crore investment planned for cleaner tech, underground mining, and diversification
• Dugda Coal Washery monetised for ₹504 crore under asset monetisation policy

Coal India Ltd (CIL) has announced an ambitious coal supply target of 900.24 million tonnes (MT) for fiscal year 2025-26, increasing supply by more than 18% over the previous year, anticipating continuing power demand and reducing the country's dependence on coal imports. The company's latest annual report indicates that nearly 74% of CIL's coal will go to the power sector, emphasizing CIL's importance to India's ability to provide a consistent supply of power.

The demand from the power sector for FY26 is 668.1 MT and the company plans to fulfil that, while also supplying non-regulated consumers and replacing imported coal when available. The company's long-term goal is to reach 1 billion tonnes production by FY 2028-29, to ultimately support the government's objective of providing 24x7 power to all homes.

CIL's efforts to ensure its growing sustainable and expanding priorities include selective mining, coal beneficiation, bringing underground mining under scrutiny, and new technologies such as gasification of coal and various coal-to-liquid (CTL) projects.

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"CIL intends to offer more coking coal to the steel sector and also supply coal for upcoming coal gasification projects", stated the company.

CIL proposes a capital investment of ₹16,000 crore for FY26 and intends to make additional investments in railways, solar and thermal power, coalbed methane (CBM) recovery, and to revive some fertiliser plants. 

 In FY25, total power generation in India increased by 5% during FY25, totaling 1,826 billion units (BU), of which coal-based generation accounted for 1,299 BU. CIL supplied 616.17 MT of coal to the power sector against a demand of 661 MT, providing a 93% materialization rate. 

Chairman P.M. Prasad reported that CIL was responding strategically and diversifying and monetising assets in order to future-proof operations, including the country's first coal washery monetisation - Dugda Coal Washery in Jharkhand, valued at ₹504 crore under the build-own-operate model.