Coal India Limited has drawn up an ambitious 3,000 MW solar capacity target by FY28, marking one of the strongest renewable pivots by a coal producer, even as its capital expenditure on solar projects more than doubled to Rs 961 crore by January FY26.
The solar capex, up from Rs 412 crore in the corresponding period last year, has already surpassed the company’s full-year investment target under the segment, signalling an acceleration in execution pace.
From 247 MW of renewable capacity commissioned till December 2025, Coal India expects installations to rise sharply to around 675 MW by the close of the current fiscal, setting the stage for a steep capacity ramp-up over the next two years.
Strategic Footprint
The immediate build-out includes two large solar projects in Gujarat — 100 MW in Patan and 300 MW in Khavda — forming the backbone of near-term expansion.
Beyond these, the state-run miner is pursuing nearly 2,000 MW of additional renewable capacity through joint ventures and competitive bidding. This includes an 875 MW project with Rajasthan Rajya Vidyut Utpadan Nigam Limited and a phased 500 MW capacity addition in partnership with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited. Bids have also been invited for a 20 MW floating solar project in Gorakhpur.
Coal India is actively participating in tariff-based competitive bidding tenders across states to secure additional capacity, while battery energy storage systems are being evaluated to support integration as renewable penetration increases. The renewable expansion is unfolding alongside a broader FY26 capital expenditure outlay of around Rs 16,000 crore.
While a substantial portion continues to be allocated toward coal evacuation infrastructure such as silos, railway connectivity, coal handling plants, heavy earth-moving machinery and land acquisition, solar investments are emerging as a fast-growing component of the capex mix.
Solar Economics
With solar installation costs easing to Rs 4–4.5 crore per MW from earlier levels of Rs 5.5–6 crore, the economics of large-scale deployment have improved, supporting Coal India’s accelerated clean energy build-out.