Coal India doubles solar capex to ₹961 crore, surpassing FY26 targets

Coal India has more than doubled its solar capex to ₹961 crore this fiscal, exceeding full-year goals as it advances its 3,000 MW renewable capacity plan and scales up participation in solar auctions

Coal India Ltd (CIL) announced it has more than doubled its capital expenditure on solar projects so far this financial year, surpassing both its progressive and full-year targets as the state-run miner accelerates its clean energy diversification plans.

 

The company’s capex on solar initiatives rose to Rs 961 crore till January FY26, marking a 2.33-fold jump from Rs 412 crore in the same period a year ago, according to a statement by the company. The spending represents 132 per cent of the progressive target of Rs 729 crore set till January 2026. In the process, CIL also exceeded its full-year FY26 capex target for solar projects of Rs 957 crore.

 

The surge in expenditure reflects the company’s focus on scaling up solar power capacity addition as an alternative green energy source. “Solar power lists high on CIL’s diversification portfolio. Among the cleaner energy sources, solar will play a pivotal role in future and we are laying the groundwork to remain relevant in the country’s energy sector,” a senior executive of the company cited in the statement said.

 

CIL has set a target of installing 3,000 MW of renewable solar capacity by FY28 as part of its plan to become a net-zero entity. As of December 2025, CIL and its subsidiaries had installed around 247 MW of renewable energy capacity. This is expected to increase to 675 MW by the end of the current fiscal.

 

The upcoming additions include two major solar power projects in Gujarat, including a 100 MW plant in Patan and a 300 MW project in Khavda.

 

Beyond these, CIL is scouting for around 2,000 MW of renewable energy capacity in the near term through subsidiaries and joint ventures. These include an 875 MW plant with Rajasthan Rajya Vidyut Utpadan Nigam Limited and a 500 MW capacity plant with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited to be developed in phases. Bids have also been invited for a 20 MW floating solar plant in Gorakhpur.

 

CIL is also participating in Tariff-Based Competitive Bidding (TBCB) tenders for solar power development across multiple states. Battery Energy Storage Systems (BESS) are also on the company’s radar. The cost of setting up 1 MW of solar capacity currently ranges between Rs 4 crore and Rs 4.5 crore, down from Rs 5.5 crore to Rs 6 crore per MW earlier, the company said.