Coal India H1 Capex Climbs 27% to ₹7,966 Crore

Coal India Limited (CIL) has spent ₹7,966 crore on capital projects during the first half of FY2026-27, registering a 27% increase over the corresponding period last year and utilising nearly 48% of its annual capital expenditure target of ₹16,500 crore.

The increased spending reflects the state-owned coal major’s continued focus on strengthening mining infrastructure, improving coal evacuation and expanding operational capacity to meet the country’s growing energy requirements.

₹2,152 Crore for Coal Evacuation Infrastructure

Coal evacuation remains a key priority, with the company investing ₹2,152 crore in infrastructure development, including railway corridors, silos and coal handling systems.

These projects are aimed at improving transportation efficiency, reducing bottlenecks at mining sites and ensuring a more reliable supply of coal to thermal power plants.

Efficient evacuation infrastructure is critical for Coal India as it seeks to sustain production levels while minimising transportation constraints across its mining operations.

Land Acquisition Accounts for ₹2,033 Crore

Land acquisition accounted for ₹2,033 crore of the company’s capital expenditure during the six-month period.

Securing land is essential for opening new mines, expanding existing operations and developing supporting infrastructure. However, acquisition-related procedures and associated clearances can affect project execution timelines.

The pace at which these projects progress will be crucial to translating higher capital expenditure into additional production capacity.

Machinery and Equipment Get a Boost

Coal India also continued investing in machinery and operational assets to improve productivity across its mining operations.

The company spent ₹452 crore on Heavy Earth Moving Machinery (HEMM), while its broader investment in plant and equipment amounted to ₹1,394 crore.

These investments are intended to strengthen operational capabilities and improve efficiency at mining sites and coal washeries.

₹739 Crore Plus Invested in Diversification

Beyond conventional coal mining, Coal India is pursuing investments in solar energy, coal gasification and critical mineral exploration.

The company has invested more than ₹739 crore in these diversification initiatives, reflecting its efforts to broaden its business portfolio while retaining its central role in India’s coal supply chain.

These projects could help the company develop additional business opportunities as India’s energy mix evolves, although their long-term contribution will depend on project execution and commercial viability.

Execution Remains the Key Challenge

The increase in capital expenditure underscores Coal India’s push to strengthen its infrastructure and operational capabilities. However, higher spending alone does not guarantee improvements in production, transportation efficiency or supply reliability.

Land acquisition delays, regulatory clearances and environmental compliance remain important challenges for mining and infrastructure projects.

The effectiveness of the current investment cycle will ultimately depend on timely project completion and the commissioning of assets capable of delivering measurable operational gains.

With ₹7,966 crore already spent in the first half against an annual target of ₹16,500 crore, Coal India’s performance in the second half of FY2026-27 will be closely watched for evidence that the increased investment is translating into stronger infrastructure, improved coal evacuation and sustained operational efficiency.