Coal India has stepped up its renewable energy investments, incurring a capital expenditure (CAPEX) of ₹9.61 billion (~$106.11 million) on solar projects in the ongoing financial year (FY) 2026 until January.

The expenditure represents 132% achievement against the progressive target of ₹7.29 billion (~$804.9 million) for the first 10 months of FY26.

The company also surpassed the full FY26 solar capex target of ₹9.57 (~$105.6 million), two months ahead of schedule.

On a year-on-year basis, CAPEX for solar projects until January 2026 surged 2.33 times to ₹4.12 billion (~$45.4 million), the company said in a regulatory filing.

Last year, the Comptroller and Auditor General of India pulled up Coal India for the tardy implementation of its solar energy initiatives and recommended that it fast-track project execution to meet its net-zero targets. It said the company and its seven subsidiaries had achieved only 4.08% of the targeted 3 GW of solar capacity by the end of 2024.

Earlier this month, Coal India approved the incorporation of two joint venture companies with Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVUNL) and Damodar Valley Corporation to develop solar projects across Uttar Pradesh.

In an indication of improved project economics, Coal India said the cost of setting up 1 MW of solar capacity had dropped to approximately ₹40 million (~441,073) to ₹45 million (~$496,21), down from ₹55 million (~$606,482) to ₹60 million (~$661,617) per MW earlier.

The company said solar power plays a prominent role in its diversification strategy. It is also actively participating in solar auctions to strengthen its presence in the renewable energy segment.

3 GW by FY28 Target

Coal India aims to turn net-zero by installing 3 GW of solar capacity by FY28.

As of December 2025, the company and its subsidiaries had installed around 247 MW of renewable energy capacity. This figure is expected to rise to 675 MW by the end of the current fiscal year, with upcoming additions from a 100 MW project in Patan and a 300 MW project in Khavda, both in Gujarat.

Coal India said it is also exploring an additional 2,000 MW of renewable energy capacity through subsidiaries and joint ventures. These include an 875 MW project in partnership with Rajasthan Rajya Vidyut Utpadan Nigam and a 500 MW project with UPRVUNL.

The company has also invited bids for a 20 MW floating solar project in Gorakhpur, Uttar Pradesh, and is participating in tariff-based competitive bidding tenders in several states.

Its renewable energy strategy also includes battery energy storage systems.