From The Economic Times · ET Online · · 3m
Coal India pivots beyond mining into energy and minerals
State-owned Coal India announces major diversification into gasification, renewables, critical minerals and power generation.
In brief
State-owned Coal India announces major diversification into gasification, renewables, critical minerals and power generation. Coal India is building a technology-driven portfolio across five platforms to reduce import dependence and boost energy security while maintaining commercial returns. Originally reported by The…
Coal India announces major diversification plan
State-owned Coal India Limited unveiled a Business Development portfolio spanning five platforms: coal gasification, thermal power, renewable energy, critical minerals, and diversified minerals including iron ore.
Five reinforcing platforms for growth
The portfolio covers coal gasification and coal-to-chemicals, thermal power, renewable energy and storage, critical minerals and advanced materials, plus diversified minerals. Together they create a technology-driven, diversified business model.
Massive investment across nation-wide projects
Coal India is investing in four coal-to-chemicals initiatives worth nearly 69,346 crore rupees, a 1,600 megawatt thermal expansion, 550 megawatts of solar capacity, and battery storage systems.
Diversification with purpose and principles
The strategy prioritizes energy and mineral security, import substitution, indigenous technology, low-carbon growth, and efficient public-asset use while maintaining commercial sustainability and risk-adjusted returns.
Coal gasification unlocks chemical value
Coal gasification converts coal into synthesis gas, which produces synthetic natural gas, ammonia, urea, ammonium nitrate, and methanol. This supports import substitution and extracts greater chemical value from coal.
Four major coal-to-chemicals initiatives
Talcher Fertilisers will produce 1.27 million metric tons per year of urea. Bharat Coal Gasification will produce 0.66 million metric tons per year of ammonium nitrate. Two SNG projects will each produce 633.6 million cubic meters per year.
Underground coal gasification pilot underway
Coal India is testing underground coal gasification at Kasta West Block to convert deep or unmineable coal into synthesis gas. Phase One completed May 31, 2025. Phase Two started June 20, 2025 and runs through 2026.
Thermal power expansion in Jharkhand
Coal India and Damodar Valley Corporation are building a 1,600 megawatt ultra-supercritical brownfield expansion at Chandrapura. The project focuses on high-efficiency generation, predictive maintenance, and emission controls.
Solar expansion across multiple models
Coal India has commissioned 550 megawatts of solar capacity and is developing rooftop, ground-mounted, captive, and utility-scale projects. A 20 megawatt floating solar project is under development at Chilwa Taal in Gorakhpur.
Battery storage supports renewable integration
Coal India is developing battery energy storage systems including a 187.5 megawatt project in Telangana and an 80 megawatt portfolio across four locations in Odisha. These systems manage peak demand and improve grid flexibility.
Critical minerals and graphite value chain
Coal India is investing in graphite assets in Madhya Pradesh and Chhattisgarh, plus rare earth elements in Andhra Pradesh and Maharashtra. A demonstration plant for coated spherical purified graphite is planned for anode material production.
Digital architecture and stage-gate model
Coal India is building common digital systems across all operations including secure data rooms, project dashboards, and GIS-based opportunity mapping. A stage-gate model covers screening, validation, feasibility, contracting, and commercial operation.
Proactive risk management across six categories
Coal India will manage technology, market, execution, environmental, cyber, and capability risks through pilot validation, customer qualification, detailed project reports, and targeted training.
Business Development Division leads execution
A dedicated Business Development Division will identify opportunities, structure partnerships, validate technologies, and move projects into disciplined execution. Immediate priorities include a unified roadmap and demonstration projects with predefined success criteria.
The takeaway
Coal India is building a technology-driven portfolio across five platforms to reduce import dependence and boost energy security while maintaining commercial returns.
