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Coal India Limited Solar Capex Reaches Rs961 Crore by January FY26, Surges 2.3x YoY

Coal India Limited (CIL) has significantly accelerated its investment in solar energy, reporting a capital expenditure of Rs 961 crore on solar initiatives by the end of January FY26. The spending reflects 132?hievement against the progressive target of Rs 729 crore for the period and has already surpassed the full-year FY26 solar capex goal of Rs 957 crore.

On a year-on-year basis, solar capex more than doubled, rising 2.33 times compared to Rs 412 crore spent during the same period last year.

Falling Solar Costs Support Expansion

The cost of installing 1 MW of solar capacity has declined to around Rs 4–4.5 crore, compared to Rs 5.5–6 crore earlier, improving project viability. A senior company executive noted that solar energy remains central to CIL’s diversification strategy, with active participation in solar auctions forming part of its expansion roadmap.

3 GW Renewable Target by FY28

CIL aims to become a net-zero entity by installing 3,000 MW of renewable solar capacity by FY28. As of December 2025, the company and its subsidiaries had commissioned approximately 247 MW of renewable capacity, which is expected to increase to 675 MW by the end of the current fiscal year.

Upcoming additions include two major solar projects in Gujarat — a 100 MW plant in Patan and a 300 MW project in Khavda.

Expanding Renewable Pipeline

Beyond current projects, CIL is pursuing nearly 2,000 MW of additional renewable capacity through subsidiaries and joint ventures. These include an 875 MW project with Rajasthan Rajya Vidyut Utpadan Nigam Limited and a 500 MW project with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited to be developed in phases. The company has also invited bids for a 20 MW floating solar plant in Gorakhpur.

CIL is further participating in tariff-based competitive bidding (TBCB) tenders across multiple states and is evaluating opportunities in Battery Energy Storage Systems (BESS) to strengthen its clean energy portfolio.