CIL sets ambitious supply target of 900 MT for FY26, plans Rs 16,000cr capex to support growth

Economic Times

3 hours ago

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Coal India Ltd (CIL) has set an ambitious supply target of 900.24 million tonnes (MT) for 2025-26, representing over 18 per cent growth from the previous year's achievement, as part of a strategy to meet rising power demand and reduce imports.According to the company's outlook by its management in its latest annual report, around 74 per cent of the total coal dispatch is expected to be consumed by the power sector alone, underscoring CIL's critical role in ensuring uninterrupted electricity supply across the country.The projected demand from the power sector for FY26 stands at 668.1 MT, and the company aims to cater to the entire requirement of power and non-regulated consumers while substituting imported coal wherever possible, the miner informed.CIL's growth roadmap aligns with the government's objective of providing 24x7 power to every household, with plans to scale up production to 1 billion tonnes by 2028-29, the company said.
To sustain growth while reducing environmental impact, the company is focusing on selective mining, coal beneficiation and blending, enhancing production from underground mines, and diversifying into cleaner coal technologies such as coal gasification and coal-to-liquid (CTL) projects.
"CIL intends to offer more coking coal to the steel sector and also supply coal for upcoming coal gasification projects," the company said, outlining plans to explore alternative uses of domestic coal and improve long-term financial performance.For FY26, CIL has earmarked a capital investment of Rs 16,000 crore to maintain volume growth. Additional investments are planned in railway infrastructure development, solar and thermal power projects, coalbed methane extraction, and the revival of fertiliser plants.During FY25, total power generation in the country grew by 5 per cent to 1,826 billion units (BU), while coal-based generation increased to 1,299 BU.Against a projected demand of 661 MT from the power sector, CIL supplied 616.17 MT, achieving a materialisation rate of around 93 per cent.Coal supplies to the non-regulated sector peaked at 145.3 MT, up 8.1 per cent, while e-auction bookings rose to 89.38 MT. However, the average e-auction premium moderated to 48 per cent from 72 per cent in the previous fiscal.Meanwhile, the Chairman and Managing Director, P M Prasad, in his address, said Coal India is intensifying efforts to future-proof its business through strategic diversification and monetisation of assets.Addressing shareholders in the latest annual report, Prasad said the state-run coal mining major is actively pursuing projects in coal gasification, coalbed methane (CBM) extraction, solar power generation, and critical minerals exploration as part of its broader plan to align with the country's energy transition goals and reduce dependency on fossil fuels.These efforts, he noted, are also aimed at unlocking new revenue streams beyond thermal coal.
In a first for India, CIL monetised the 2 MTPA Dugda Coal Washery in Jharkhand's Bokaro, under the build-own-operate model, valued at Rs 504 crore, marking the country's first-ever coal washery monetisation in line with the government's asset monetisation policy, he said.