New Delhi | October 28, 2026
Coal India Limited (CIL) has recorded a strong increase in capital expenditure during the first half of financial year 2026–27, reflecting its continued focus on expanding mining capacity, modernising operations and strengthening coal evacuation infrastructure.
The state-owned mining major incurred ₹7,966 crore in capital expenditure during April–September 2026, registering a 27% increase over ₹6,283 crore spent during the corresponding period of FY2025–26. CIL also exceeded its first-half capex target of ₹7,286 crore, achieving 109% of the planned outlay. The H1 expenditure represents more than 48% of the company’s full-year capex target of ₹16,500 crore.
Mine Infrastructure Gets Major Investment
Mine infrastructure development emerged as the largest area of CIL’s capital expenditure during H1 FY27, attracting ₹2,152 crore.
The investment includes infrastructure such as railway sidings and corridors, coal handling plants (CHPs), silos and weighbridges. These facilities are critical for improving the movement of coal from mines to consumers and increasing the efficiency of the company’s evacuation network.
The focus on evacuation infrastructure is particularly significant as Coal India continues to strengthen its ability to meet the requirements of India’s power and industrial sectors.
₹2,033 Crore Spent on Land Acquisition
Land acquisition represented another major component of CIL’s capital spending, with ₹2,033 crore invested during the six-month period.
The company also spent more than ₹1,000 crore on mine development, supporting the expansion and operational readiness of mining projects. Such investments are expected to strengthen CIL’s production capabilities and prepare mines for higher operational capacity.
Heavy Machinery and Modernisation
CIL’s Plant and Machinery segment accounted for ₹1,394 crore of expenditure during H1 FY27. This included investments in heavy earth-moving machinery (HEMM), washeries and other plant and equipment.
Of this amount, approximately ₹452 crore was spent on HEMMs, helping strengthen mining operations and improve productivity and operational efficiency.
The increased deployment of modern equipment is part of CIL’s broader transition towards technology-enabled and more efficient mining operations. The company has also been adopting digital technologies, automation, integrated command centres and advanced mining systems.
Diversification Beyond Coal
An important feature of CIL’s current investment strategy is its growing emphasis on business diversification.
The company invested more than ₹739 crore during H1 FY27 in diversification initiatives covering areas such as solar energy, critical minerals, coal gasification and thermal power generation.
This indicates that Coal India is gradually positioning itself not only as India’s largest coal producer but also as a broader energy and natural-resources enterprise.
Coal India’s diversification strategy is consistent with its wider portfolio development across renewable energy and storage, coal gasification, critical minerals and advanced materials. The company has also been pursuing large-scale projects in these emerging areas.
Strengthening India’s Energy Security
Coal continues to play an important role in India’s electricity generation and industrial activity. Coal India supplies a substantial share of the country’s domestic coal requirement, particularly to the power sector.
The company’s investment in mine development, mechanised coal handling, railway connectivity and modern equipment comes at a time when reliable coal supply remains an important component of India’s energy-security framework.
During H1 FY27, CIL’s total coal offtake reached 384.2 million tonnes, up from 357.0 million tonnes in the corresponding period of the previous year, representing growth of 7.6%. Domestic coal-based power generation also increased during the period.
Capex Strategy Supports Long-Term Growth
The latest capex figures indicate that CIL is maintaining a strong investment cycle despite being a mature mining enterprise. Mine infrastructure, land acquisition, plant and machinery and diversification together accounted for more than 79% of the company’s H1 FY27 capex.
The investments are aimed at improving operational efficiency, expanding mining capabilities, strengthening coal evacuation and developing new businesses.
With more than ₹7,966 crore already invested during the first six months, Coal India has crossed nearly half of its annual capital expenditure target. The pace of spending will therefore remain important to watch during the second half of FY27 as the company works towards its ₹16,500 crore annual capex target.
The Worldonomics Times – PSU Perspective
Coal India’s H1 FY27 capex performance reflects a broader transformation underway in India’s public-sector energy companies. While strengthening their traditional businesses, PSUs are increasingly investing in technology, infrastructure, renewable energy, critical minerals and new energy solutions.
For Coal India, the challenge will be to convert this higher capital deployment into sustained productivity gains, stronger evacuation capacity and long-term diversification. If executed effectively, the investment cycle could strengthen CIL’s role in India’s energy security while preparing the Maharatna PSU for a more diversified energy future.
