New Delhi — Coal India Ltd, India’s largest coal-producing public sector enterprise, has sharply increased its capital expenditure target for solar energy, signaling a major shift toward renewable power and diversification beyond fossil fuels.
The company now plans to invest ₹961 crore (approximately $115 million) in solar projects by January 2026, marking a 132% increase over its earlier estimated target of ₹729 crore. The revised figure also surpasses Coal India’s original FY26 solar capex target of ₹957 crore, highlighting the pace at which the PSU is accelerating its clean-energy roadmap.
On a year-on-year basis, solar capital spending has surged 2.33 times, rising from ₹412 crore to the current target. The move comes as the cost of installing solar capacity has declined, with current prices ranging between ₹4–4.5 crore per megawatt, down from ₹5.5–6 crore per MW in previous years.
“Solar power ranks high in Coal India’s diversification strategy,” a senior company executive said. “Among cleaner energy sources, solar will play a pivotal role in the future, and we are laying the groundwork to stay relevant in India’s evolving energy sector. We are also actively participating in solar auctions.”
Net-Zero Ambitions and Capacity Expansion
Coal India is aiming to become a net-zero entity by installing 3,000 MW of renewable solar capacity by FY 2028. As of December 2025, the company and its subsidiaries had commissioned 247 MW of renewable capacity, which is expected to rise to 675 MW by the end of the current financial year.
Major upcoming projects include two large solar installations in Gujarat—a 100 MW plant in Patan and a 300 MW project in Khavda.
Joint Ventures and Future Projects
Beyond these projects, Coal India is planning to add 2,000 MW of renewable energy capacity through subsidiaries and joint ventures. Key initiatives include an 875 MW solar plant in partnership with Rajasthan Rajya Vidyut Utpadan Nigam Limited and a 500 MW project to be developed in phases with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited.
The company has also invited bids for a 20 MW floating solar power plant in Gorakhpur and is actively participating in tariff-based competitive bidding (TBCB) tenders for solar development across multiple states.
In addition, Coal India is exploring Battery Energy Storage Systems (BESS) as part of its long-term renewable integration strategy, reinforcing its commitment to cleaner and more reliable power generation.