New Delhi: Coal India Limited (CIL) has spent Rs 961 crore on solar projects till January FY26, registering a 2.33 times year-on-year increase and exceeding its full-year target. The expenditure represents 132 percent of the progressive capex target of Rs 729 crore for the period. It has also surpassed the company’s full FY26 solar capex target of Rs 957 crore.
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On a year-on-year basis, solar capex more than doubled from Rs 412 crore in the corresponding period last year, reflecting a sharper capital shift toward renewable energy as part of the miner’s diversification strategy.
Currently, the cost of setting up 1 MW of solar capacity ranges between Rs 4 crore and Rs 4.5 crore, compared with Rs 5.5–6 crore earlier, improving the economics of scaling up capacity.
“Solar power lists high on CIL’s diversification portfolio. Among the cleaner energy sources solar will play a pivotal role in future and we are laying the groundwork to remain relevant in the country’s energy sector. We are actively participating in solar auctions, as well,” a senior company executive said.
CIL has set a target of installing 3,000 MW of renewable solar capacity by FY28 as part of its plan to become a net-zero entity. Till December 2025, CIL and its subsidiaries had installed around 247 MW of renewable energy capacity. This is expected to rise to 675 MW by the end of the current fiscal.
The upcoming additions include two large solar projects in Gujarat — a 100 MW plant in Patan and a 300 MW project in Khavda — which are central to near-term capacity ramp-up.
Beyond these, the company is scouting for 2,000 MW of renewable energy capacity through subsidiaries and joint ventures. Plans include an 875 MW plant with Rajasthan Rajya Vidyut Utpadan Nigam Limited and a 500 MW project in phased manner with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited. Bids have also been invited for a 20 MW floating solar plant in Gorakhpur.
In addition to project-specific developments, CIL is participating in Tariff-Based Competitive Bidding (TBCB) tenders for solar projects across multiple states. Battery Energy Storage Systems (BESS) are also on the company’s radar, signalling an intent to complement solar generation with storage capabilities.
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The accelerated capital deployment, coupled with capacity expansion plans and participation in competitive auctions, positions solar energy as a central pillar in CIL’s diversification beyond coal and its longer-term relevance in India’s evolving energy mix.
