Coal India Limited ₹1 Trillion Capex Plan to Boost Mining, Coal Evacuation and Power Projects by FY31 – Indian PSU
Coal India Limited is set to invest nearly ₹1 trillion in capital expenditure over the next five years until FY31, focusing on mining modernisation, coal evacuation infrastructure, coal gasification, and thermal power projects, according to a report by Business Standard.
The company stated that its annual capital expenditure is expected to range between ₹18,000 crore and ₹25,000 crore, depending on project requirements. In the previous financial year, Coal India reported a capex of approximately ₹16,500 crore.
Accounting for over 80% of India’s total coal production, Coal India aims to significantly strengthen its infrastructure, particularly in coal evacuation systems.
Focus on First-Mile Connectivity Projects
A substantial portion of the planned investment will be directed towards improving coal evacuation through first-mile connectivity (FMC) projects. These include the installation of conveyor systems, silos, and mechanised rail-loading facilities to streamline coal transport.
Currently, the company operates 46 FMC projects with a combined handling capacity of 432 million tonnes. Additionally, 13 more projects with a capacity of 133 million tonnes are expected to be commissioned during the current financial year.
By FY30, Coal India plans to scale up the number of such projects to 94, with an estimated total handling capacity of around 995 million tonnes.
Shift in Supply Strategy
Coal India has also begun recalibrating its supply strategy due to persistently high pithead stock levels. At the start of FY27, the company had coal stock exceeding 130 million tonnes at mine pitheads.
The company now plans to gradually reduce these stock levels to around 50 million tonnes while increasing direct dispatches to consumers. This marks a strategic shift from stockpiling towards a “produce and sell” model, which is expected to improve coal movement and handling efficiency.
Diversification into Gasification and Power
As part of its diversification strategy, Coal India is expanding into coal gasification and thermal power generation.
A ₹25,000 crore coal gasification project is under development at Lakhanpur in Odisha in partnership with Bharat Heavy Electricals Limited.
Separately, Coal India is jointly developing a 1,600 MW thermal power project at Chandrapura with Damodar Valley Corporation, with an estimated investment of around ₹20,000 crore.
Financial Performance
For FY26, Coal India reported a consolidated net profit of ₹31,071 crore, marking an 11% year-on-year decline. However, its revenue from operations remained largely flat at ₹1.68 trillion.
