Coal India Exceeds Q1 Capex Target with INR 3,399 Crore Investment, Boosts Mining and Clean Energy Infrastructure

Coal India (CIL) recorded a capital expenditure (capex) of INR 3,399 crore during the first quarter (Q1) of FY 26–27, registering a growth of 16.64 percent over the INR 2,914 crore incurred during the corresponding period of the previous financial year. The company also surpassed its quarterly capex target of INR 3,349 crore, achieving 101.5 percent of the planned expenditure. The company’s Q1 spending represents 20.60 percent of CIL’s total capital expenditure target of INR 16,500 crore for the current fiscal. 

Land acquisition and related Rehabilitation and Resettlement (R&R) activities accounted for the highest expenditure during the quarter at INR 804 crore, constituting nearly one-fourth of the total capex. Timely acquisition of land is a critical prerequisite for coal mining, as mining projects cannot commence or expand without it, irrespective of the availability of coal reserves. Reflecting on its strategic importance, land acquisition and related activities have been allocated the highest capex target of INR 4,173 crore out of the company's total annual capex target for FY’27. 

Coal India also continued to strengthen its coal evacuation infrastructure by investing INR 754 crore in the development of railway sidings and rail corridors. In addition, INR 195 crore was spent on the construction of Coal Handling Plants (CHPs), silos, weighbridges and roads, taking the cumulative expenditure on coal evacuation infrastructure to INR 949 crore during the quarter ended June 2026. 

Capital expenditure under the Plant and Machinery (P&M) segment stood at INR 819 crore, covering procurement of Heavy Earth Moving Machinery (HEMM), construction and expansion of washeries, and other plant and equipment-related activities. This category also accounted for nearly one-fourth of the company's total capex during the quarter. 

B. Sairam, Chairman, Coal India, stated, “Expenditures on land acquisition, development of coal evacuation infrastructure, and plant & machinery constitute the major components of our capital expenditure. Together, these three broad heads accounted for over 75 percent of the total capex incurred during the first quarter. These strategic investments have laid a strong foundation for the company to achieve its production and supply targets for the ongoing fiscal.”  

As part of its ongoing diversification into clean energy, Coal India incurred a capital expenditure of INR 278 crore on its solar projects during the quarter, while investments in the company's Joint Ventures (JVs) amounted to INR 207 crore. 

Notably, Coal India had achieved a capital expenditure of INR 19,607 crore during FY 25–26, surpassing its annual target of INR 16,000 crore, strengthening mining infrastructure, enhancing coal evacuation capabilities and advancing its clean energy initiatives.