New Delhi: Coal India Limited (CIL) has allocated significant part of its future capex plans to critical minerals, the coal miner said in its annual report 2024-25. According to the future outlook prepared by CIL’s management, “Coal India limited has allocated a significant portion of planned CAPEX towards foray into Critical minerals, Coal Gasification, thermal power plants and renewable energy portfolio.”
According to the plans outlined in the company’s annual report, CIL plans to engage in various segments of the critical minerals value chain through standalone ventures or strategic collaborations for mining, midstream and downstream processing, and establishment of end-product manufacturing facilities.
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Currently, CIL is scouting for acquisition of critical mineral assets within the country and overseas in mineral rich countries like Australia, Argentina and Chile. “CIL has signed an MoU with Curtin University, Australia for collaboration in the Critical Minerals Sector. The Company is also in collaboration with KABIL and other PSUs and has entered the second phase of negotiations for the acquisition of lithium assets in Australia with a due diligence process for the submission of a Binding Offer currently in progress. CIL has signed MoU with Non-Ferrous Materials Technology Development Centre, Hyderabad for R&D, demonstration and commercial level projects,” said CIL in its annual report.
Coal India has been given an ambitious coal offtake target of 900.24 Million Tonnes (MT) for FY2025-26, which is 18 percent higher than the 762.98 MT achieved in FY2024-25. The company will aim to produce 875 MT of coal in 2025-26, which would be a growth of 12.02 percent over the last financial year.
The projected demand from the power sector for FY2025-26 is 668.1 MT, which is 74 percent of the total coal production target for the year. Coal India said that it will aim to cater to the demand from both power and non-regulated consumers of coal, while substituting imports wherever possible.
CIL plans to enhance its production to 1 BT by the year 2028-29 from the current level production of 781 MT in FY2024-25. “CIL has already identified all resources required, including major projects that will contribute to its 1 BT production plan and its related issues/enablers like requirement of EC/FC, land, evacuation constraints etc,” said the coal PSU in its annual report. However, “CIL shall adhere to 1-BT coal production plan but the demand scenario shall decide the production/supply in future,” said the company. The proposed capital expenditure for the year 2025-26 has been set at Rs 16,000 crores.
The Coal India Chairman, however, stressed the importance of coal in India’s energy mix, stating that coal would spearhead India’s energy generation for at least the next two decades. “In the Indian context, coal’s role is even more prominent and coal-based power generation is twice that of the global average at 72 percent of the country’s total generation. Of India’s total installed capacity of 475.59 GW (as of May 2025), non-fossil fuel energy sources account for 235.70 GW or nearly 50 percent. This is a testimony of their rapid ascendancy and the country’s deep commitment to the cleaner energy. Yet, coal would spearhead the country’s energy march for the next two decades at least and perhaps even beyond,” said Prasad in a note addressed to the shareholders in the annual report.
CIL monetised assets worth nearly Rs 8,462 crores in during FY2024-25. “It was through three asset types: Award of three Mine Developer and Operator projects accounted for a monetisation of Rs 7,128 crores while seven abandoned/ discontinued mines were monetised at a value of Rs 830 crores. One washery on build-own-operate amounted Rs 504 Crores,” said the annual report.
“In a historic step, the 2 MTPA Dugda Coal Washery of BCCL in Bokaro, Jharkhand, LoI issued on 28.03.2025 & Transaction Agreements (WDOA & FSA) signed on 24.06.2025 for monetisation. This marks the first-ever monetisation steps of a coal washery in India and aligns with the government’s policy of asset monetisation,” said CIL.
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