Coal India Expands Beyond Coal Mining with Technology-Led Diversification
CIL Builds Portfolio Across Coal Gasification, Power, Renewables, Energy Storage, Critical Minerals and Advanced R&D
By Suman Munshi, IBG NEWS
New Delhi, September 20, 2026: Coal India Limited (CIL) is expanding its business portfolio beyond conventional coal mining, pursuing a technology-driven diversification strategy covering energy, minerals, advanced materials and research and development.
According to a Press Information Bureau release, CIL’s diversification programme is structured around five broad platforms: coal gasification and coal-to-chemicals, thermal power, renewable energy and storage, critical minerals and advanced materials, and diversified minerals including iron ore. (Press Information Bureau)
The company’s portfolio already encompasses projects estimated at around ₹69,346 crore across four coal-to-chemicals initiatives, a proposed 2×800 MW ultra-supercritical expansion at Chandrapura, approximately 550 MW of commissioned solar capacity, grid-scale Battery Energy Storage Systems (BESS), and opportunities in critical minerals and downstream materials.
Coal Gasification and Coal-to-Chemicals
Coal gasification converts coal into synthesis gas, or syngas, which can subsequently be used to manufacture products such as synthetic natural gas, ammonia, urea, ammonium nitrate and methanol.
CIL’s major coal-to-chemicals initiatives include:
- Talcher Fertilizers Ltd. — 1.27 MMTPA urea capacity; estimated project cost ₹19,062.22 crore.
- Bharat Coal Gasification & Chemicals Ltd. — 0.66 MMTPA ammonium nitrate capacity; estimated cost ₹25,015.89 crore.
- Coal Gas India Ltd. — 633.6 million Nm³ annually of synthetic natural gas; estimated cost ₹13,052.81 crore.
- CIL-BPCL Chandrapur coal-to-SNG project — 633.6 million Nm³ annually; estimated cost ₹12,214.86 crore.
The projects are expected to focus on adapting gasification technology to India’s high-ash coal, localisation of critical equipment, advanced process controls, digital twins, predictive maintenance and improved management of water, ash and emissions.
The wider national coal-gasification programme has also gained momentum, with the Ministry of Coal reporting seven applications under the ₹37,500-crore surface coal/lignite gasification scheme in its first round. (Press Information Bureau)
Underground Coal Gasification Under Pilot Development
CIL is also pursuing Underground Coal Gasification (UCG) at the Kasta West Block of Eastern Coalfields Limited.
The initiative is being implemented in phases because commercial-scale UCG has not yet been globally established. The first phase was completed in May 2025, while the second phase, involving detailed engineering, directional drilling and gasification infrastructure, commenced in June 2025 and is scheduled for completion in 2026.
Expansion into Thermal and Renewable Power
CIL and Damodar Valley Corporation are pursuing a proposed 50:50 joint venture for a 2×800 MW ultra-supercritical brownfield expansion at Chandrapura in Jharkhand.
Alongside thermal power, CIL has commissioned approximately 550 MW of solar capacity and is developing additional rooftop, ground-mounted, captive, interstate and market-linked renewable projects.
The company is also developing a 20 MW AC floating solar project at Chilwa Taal in Gorakhpur, subject to assessments covering water levels, bathymetry, wind and wave conditions, anchoring, corrosion, maintenance, safety and ecological considerations.
Battery Storage Becomes a New Business Area
CIL is entering the grid-scale energy-storage segment through Battery Energy Storage System projects.
One major initiative is the 187.5 MW/750 MWh BESS project at Choutuppal in Telangana, with a four-hour storage duration. CIL has been awarded the project, while EPC selection and long-term operation and maintenance arrangements are progressing.
Another portfolio involves 80 MW/320 MWh of BESS capacity across four locations in Odisha, also designed for four-hour operation.
Focus on Critical Minerals and Advanced Materials
Critical minerals are increasingly important for batteries, electric vehicles, renewable-energy technologies, electronics, aerospace, defence and advanced manufacturing.
CIL is exploring opportunities involving graphite in Madhya Pradesh and Chhattisgarh, along with rare-earth and rare-metal opportunities in Andhra Pradesh and Maharashtra. The company is examining resource definition, geometallurgy, beneficiation, recovery, product specifications, waste management and market development.
One significant objective is to develop an integrated graphite value chain covering mining, beneficiation, purification, spheronisation, coating and anode-material production.
In collaboration with the Non-Ferrous Technology Development Centre, CIL has proposed a demonstration facility for coated spherical purified graphite with a targeted purity of at least 99.95%.
Digital Governance and Stage-Gated Project Development
CIL plans to establish a common digital architecture across mining, power, renewable energy, grid services and advanced-material businesses.
The proposed system will include enterprise data rooms, standardised financial models, GIS-based opportunity mapping and portfolio dashboards tracking investments, approvals, schedules, risks and returns.
A common stage-gate framework is also envisaged, covering opportunity screening, concept validation, feasibility, contracting, demonstration and commercial operation.
Strengthening Research and Development
CIL’s R&D framework has evolved from the Standing Committee on Science and Technology established in 1975, followed by the R&D Board in 1994 and the Apex Committee in 2003.
Under its 2026 R&D Policy and Guidelines, the company is prioritising projects at Technology Readiness Level 4 and above. Key research areas include artificial intelligence and machine learning for mining, IoT-based smart mining, mine safety, exploration, environmental sustainability, waste-to-wealth, alternative coal utilisation, renewable energy, clean coal and mineral processing.
The R&D ecosystem connects CIL’s Centres of Excellence with IITs, NITs, CSIR laboratories, research institutions, start-ups, incubation centres and industry partners.
Centres of Excellence and R&D Investment
Among the major CIL-supported Centres of Excellence are:
- CIL Centre of Sustainable Energy at IIT Madras — ₹87.90 crore.
- CLEANZ at IIT Hyderabad — ₹98 crore.
- CIL Centre for Innovation in Mining at IIT (ISM) Dhanbad — ₹67.45 crore.
- CII Centre at IIT (ISM) Dhanbad — ₹10 crore.
CIL’s R&D portfolio currently comprises 20 projects with an approved outlay of ₹231 crore. Projects include underground coal gasification, 5G captive networks for mines, bifacial perovskite solar cells, and AI-assisted exploration for critical minerals.
R&D expenditure was reported at ₹61.31 crore in FY2023–24, ₹245.38 crore in FY2024–25 and ₹183.88 crore in FY2025–26. Planned expenditure rises to ₹225 crore in FY2026–27 and is projected to reach ₹500 crore by FY2029–30.
A Broader Role for Coal India
The diversification programme signals a broader business model for CIL, extending its capabilities from conventional mining into value-added coal utilisation, power generation, renewable energy, energy storage, critical minerals, advanced materials and technology development.
The company says its approach will rely on technology validation, strategic partnerships, indigenous capability, disciplined investment and measurable project outcomes. Its Business Development Division is expected to coordinate opportunity identification, partnerships, technology validation, commercial models and project execution.
The stated objective is to convert research and emerging technologies into commercially sustainable projects while contributing to energy and mineral security, import substitution and domestic technological capability.
By Suman Munshi
IBG NEWS
