Coal India Expands Beyond Coal Into Energy, Critical Minerals, Advanced Materials and Technology

Coal India Limited is steadily reshaping itself beyond its traditional role as India’s largest coal producer. The company is building a diversified portfolio spanning coal gasification, chemicals, thermal power, renewable energy, battery storage, critical minerals, advanced materials and research. Its Business Development portfolio is now organised around five broad platforms covering coal-to-chemicals, power generation, renewable energy and storage, critical minerals and advanced materials, and diversified minerals such as iron ore. Pasted markdown

The scale of the programme is already substantial. Coal India is pursuing approximately ₹69,346 crore of investment across four coal-to-chemicals initiatives, a 2×800 MW ultra-supercritical power expansion at Chandrapura, around 550 MW of commissioned solar capacity, grid-scale battery storage projects and new opportunities in critical minerals and downstream materials. The strategy is designed to use the company’s mining experience, land holdings, project-management capability, financial strength and nationwide operating footprint to create new businesses linked to India’s energy and mineral requirements.

Diversification Built Around Energy and Mineral Security

Coal India describes its approach as “diversification with purpose”, with the new businesses expected to contribute to energy security, mineral security, import substitution, indigenous technology development and more resilient domestic manufacturing. The company is also seeking to expand into lower-carbon energy while ensuring that new projects remain commercially sustainable and deliver acceptable returns.

This marks a significant change in the way Coal India is positioning itself. Rather than remaining dependent on a single commodity, the company is attempting to use the capabilities created through decades of mining operations to enter adjacent industries where its existing infrastructure, procurement systems and financial resources can provide an advantage.

Coal-to-Chemicals Becomes a Major Investment Area

Coal gasification is emerging as one of the largest components of Coal India’s diversification. The process converts coal into synthesis gas, commonly known as syngas, which can then be used to produce synthetic natural gas, ammonia, urea, ammonium nitrate, methanol and other chemicals. The attraction for India lies in extracting additional industrial value from domestic coal while reducing dependence on imported chemical feedstocks.

Four large projects form the core of this programme. Talcher Fertilizers Limited is being developed with a capacity of 1.27 million tonnes per annum of urea at an estimated project cost of ₹19,062.22 crore. Bharat Coal Gasification & Chemicals Limited is planned with a capacity of 0.66 million tonnes per annum of ammonium nitrate at an estimated cost of ₹25,015.89 crore. Coal Gas India Limited is targeting 633.6 million normal cubic metres per year of synthetic natural gas with an estimated investment of ₹13,052.81 crore, while the CIL-BPCL Chandrapur initiative proposes a similar SNG capacity at an estimated cost of ₹12,214.86 crore. Pasted markdown

The technical challenge lies in adapting gasification systems to the characteristics of high-ash Indian coal. Coal India is therefore focusing on process optimisation, localisation of critical equipment, advanced process control, digital twins, predictive maintenance and improved management of water, ash and emissions. The company has also indicated that replication of these projects will depend on demonstrated operating and commercial performance rather than automatic expansion.

Underground Coal Gasification Moves Through Pilot Stage

Coal India is also examining Underground Coal Gasification as a possible route for utilising deep-seated or otherwise difficult-to-mine coal resources. The technology produces syngas underground rather than bringing the coal to the surface, offering a potential use for reserves that may be uneconomic or technically challenging to mine through conventional methods.

A phased pilot is under way at the Kasta West Block of Eastern Coalfields Limited. Phase I was completed on 31 May 2025, while Phase II began on 20 June 2025 and covers detailed engineering, directional drilling, injection and production wells, ignition systems and process control. The second phase is scheduled for completion during 2026. Pasted markdown

Coal India is approaching the technology cautiously because Underground Coal Gasification has not yet achieved broad commercial maturity internationally. The pilot will therefore serve as an important test of technical feasibility and operating performance before any larger deployment is considered.

Coal India Expands Into Large-Scale Power Generation

Coal India and Damodar Valley Corporation are pursuing a 2×800 MW ultra-supercritical brownfield expansion at Chandrapura in Jharkhand through a proposed 50:50 joint venture. DVC is expected to facilitate the sale of electricity generated by the project, while the plant will incorporate a range of efficiency and environmental measures.

The project is expected to use high-efficiency generation technology along with predictive maintenance, flexible plant operation, emission-control systems, water recycling and scientific ash utilisation. Coal India’s continued expansion into thermal power therefore sits alongside its growing renewable-energy portfolio rather than being treated as a separate business direction.

Solar Capacity Reaches Around 550 MW

Coal India has already commissioned approximately 550 MW of solar capacity and is developing additional rooftop, ground-mounted, captive, interstate and market-linked projects. The company is following two broad models, with captive solar intended to reduce internal power costs and emissions while utility-scale projects are designed for commercial electricity generation.

Future projects will be assessed on solar resource quality, transmission availability, land, storage requirements, curtailment risk, power offtake and delivered cost. Coal India also plans to use digital monitoring and hybrid storage solutions to improve operational performance and manage the variability associated with renewable generation.

The company is separately developing a 20 MW AC grid-connected floating solar project at Chilwa Taal in Gorakhpur. Floating solar can reduce pressure on land, but the suitability of each project depends on water-level variation, bathymetry, wind conditions, anchoring systems, corrosion, maintenance requirements and ecological considerations. Pasted markdown

Battery Storage Becomes a New Business Vertical

Battery Energy Storage Systems are becoming another important part of Coal India’s emerging energy portfolio. Storage can support renewable-energy integration, manage peak electricity demand, improve grid flexibility and make better use of existing transmission infrastructure.

One of the largest projects is the TGGENCO Choutuppal BESS in Telangana, with a capacity of 187.5 MW and 750 MWh, providing four hours of storage. The project has been awarded to Coal India, while EPC selection and long-term operation and maintenance arrangements are being progressed.

Coal India is also developing an 80 MW/320 MWh battery-storage portfolio across four locations in Odisha. Capacity has been secured through the Solar Energy Corporation of India, and the EPC tender has already been issued. The company has identified high availability, dependable state-of-charge management, dispatch compliance and long-term augmentation planning as critical to the commercial success of these storage assets. Pasted markdown

Critical Minerals Become a Strategic Priority

Critical minerals are becoming increasingly important to Coal India’s diversification because of their role in batteries, electric vehicles, renewable-energy systems, electronics, aerospace, defence and advanced manufacturing. The company is examining domestic opportunities involving graphite in Madhya Pradesh and Chhattisgarh as well as rare earth and rare-metal prospects in Andhra Pradesh and Maharashtra.

The work covers resource definition, geometallurgy, beneficiation, recovery, product specification, waste management and market linkage. Coal India is collaborating with organisations including IREL, the Non-Ferrous Technology Development Centre, Curtin University, Hindustan Copper and state entities to build technical capability and evaluate commercial opportunities. Overseas opportunities will also be considered through technical and financial due diligence. Pasted markdown

The expansion into critical minerals represents a natural extension of Coal India’s mining expertise, but the company is seeking to move beyond extraction into processing and downstream materials where more value can be retained within the domestic economy.

Coal India Plans an Integrated Graphite Value Chain

Graphite is one of the most important materials used in modern battery manufacturing, particularly for lithium-ion battery anodes. Coal India plans to build an integrated graphite value chain covering mining, beneficiation, purification, spheronisation, coating and eventual production of anode materials.

In collaboration with the Non-Ferrous Technology Development Centre, the company has proposed a demonstration plant for coated spherical purified graphite with a purity of at least 99.95%. The facility is intended to function as a qualification platform, with commercial expansion dependent on consistent product quality, process performance and customer acceptance. Pasted markdown

The approach shows that Coal India is not limiting its critical-mineral strategy to extraction. Moving into battery-grade materials would place the company higher in the value chain and connect its mining operations with India’s emerging battery and electric-mobility ecosystem.

Digital Systems to Link Coal India’s New Businesses

Managing such a diverse portfolio requires a common digital architecture across mining, process industries, thermal power, renewable energy, storage and advanced materials. Coal India therefore plans to build integrated systems for project evaluation, monitoring, financial modelling and asset management.

The proposed architecture includes secure enterprise data rooms, standard financial models, GIS-based opportunity mapping, project dashboards and digital-engineering requirements from the tender stage onward. A common stage-gate process will assess projects from opportunity screening and concept validation through feasibility, contracting, demonstration and eventual commercial operation.

Joint ventures and strategic partnerships will be used where specialised technologies or market access are required. Coal India intends to place emphasis on technology transfer, localisation, measurable deliverables and time-bound milestones so that partnerships build internal capability rather than simply provide access to finished systems. Pasted markdown

Research and Development Becomes a Larger Part of the Strategy

Coal India’s research framework has evolved considerably from the Standing Committee on Science and Technology established in 1975. The company later created an R&D Board in 1994 and an Apex Committee in 2003, while the new R&D Policy and Guidelines of 2026 place greater emphasis on technologies at Technology Readiness Level 4 and above.

Priority areas include mine planning, productivity, safety, exploration, artificial intelligence, machine learning, IoT-based smart mining, environmental technologies, waste-to-wealth applications, indigenous technology development, alternative uses of coal, renewable energy, clean-coal technologies, beneficiation and mineral processing.

NaCCER functions as the central nodal agency within this system and is supported by a hub-and-spoke network connecting Coal India’s Centres of Excellence with IITs, NITs, CSIR laboratories, research institutions, startups, incubation centres and industry partners. Pasted markdown

IIT Centres of Excellence Support the Technology Push

Coal India is funding several major Centres of Excellence at leading Indian institutions. The CIL Centre of Sustainable Energy at IIT Madras has received support of ₹87.90 crore and focuses on sustainable materials, mine repurposing and energy transition, while CLEANZ at IIT Hyderabad has been supported with ₹98 crore for work on clean-coal technology and low-grade Indian coal.

At IIT (ISM) Dhanbad, the CIL Centre for Innovation in Mining has received ₹67.45 crore for research in Mining 4.0, IoT, smart mines, immersive technologies and 5G. Another innovation centre at the institute, supported with ₹10 crore, focuses on incubation, prototyping, virtual reality, simulation and automation. Pasted markdown

These centres are intended to connect Coal India’s operational challenges with academic research and technology development, allowing new systems to move more quickly from laboratory work into field trials and eventual deployment.

R&D Spending Rises Sharply

Coal India’s current R&D portfolio consists of 20 individual projects with an approved outlay of ₹231 crore. Major initiatives include Underground Coal Gasification at Kasta West, captive 5G networks for opencast and underground mines, bifacial perovskite solar cells and the use of artificial intelligence and geophysical methods for critical-mineral exploration.

R&D expenditure increased from ₹61.31 crore in FY2023-24 to ₹245.38 crore in FY2024-25 before reaching ₹183.88 crore in FY2025-26. Planned expenditure is ₹225 crore in FY2026-27, ₹350 crore in FY2027-28, ₹400 crore in FY2028-29 and ₹500 crore in FY2029-30. Pasted markdown

Achievements during FY2026-27 include five patent filings, two additional patents under process, the grant of a patent related to bifacial perovskite solar cells, technology transfer for commercialisation of Velocity of Detonation measurement equipment and discussions on establishing additional Centres of Excellence with IIIT Roorkee and IIT Kharagpur. Pasted markdown

From Coal Miner to Diversified Technology Enterprise

Coal India’s diversification now extends far beyond the traditional boundaries of the coal sector. Gasification, synthetic fuels, ultra-supercritical generation, solar power, battery storage, critical minerals, graphite processing and advanced research are becoming parts of a broader portfolio intended to position the company within emerging areas of India’s energy and industrial economy.

The next phase will depend on execution. Coal India has indicated that technology validation, indigenous capability, strategic partnerships, disciplined investment, digital governance and risk management will determine which projects move from demonstration into commercial scale.

The transformation could eventually give Coal India a substantially different role in the Indian economy. Instead of remaining primarily a supplier of thermal coal, the company is positioning itself across energy, strategic minerals, advanced materials and technology development, areas that are increasingly important to India’s energy security, mineral security, import substitution and technological self-reliance.

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References

Press Information Bureau / Ministry of Coal — Coal India Advances Technology-Led Diversification Across Energy, Minerals, Advanced Materials and R&D, 20 September 2026

Coal India Limited — Corporate and Business Development Information
https://www.coalindia.in/

Ministry of Coal — Coal Gasification and Diversification Initiatives
https://coal.gov.in/

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