Coal India Limited (CIL) has reported a significant 27% increase in its capital expenditure (capex) for the first half of the fiscal year 2026-27, amounting to ₹7,966 crore. This marks a substantial rise from the ₹6,283 crore spent during the same period in the previous fiscal year. Notably, the company exceeded its planned outlay for the period, achieving 109% of the target of ₹7,286 crore, and reached over 48% of its annual capex target of ₹16,500 crore.
The increase in capex underscores CIL’s ongoing commitment to enhancing its mining infrastructure and operational capabilities. The largest portion of this expenditure, ₹2,152 crore, was allocated to mine infrastructure development. This included investments in railway sidings, coal handling plants, silos, and weighbridges, all aimed at improving coal evacuation and handling infrastructure.
Land acquisition was another significant area of investment, with CIL spending ₹2,033 crore during the period. Additionally, more than ₹1,000 crore was directed towards mine development, supporting the expansion and operational readiness of mining projects. The company also invested ₹1,394 crore in plant and machinery, including heavy earth moving machinery and washeries, with ₹452 crore specifically allocated for procuring heavy machinery to enhance mining operations.
CIL’s diversification initiatives also saw continued investment, with over ₹739 crore directed towards projects such as solar energy, critical minerals, coal gasification, and thermal power generation. These investments reflect CIL’s strategic focus on diversifying its operations and strengthening its overall production and supply capabilities.
Analysts note that CIL’s robust capex performance is a positive indicator of the company’s strategic direction and operational focus. By prioritising infrastructure development and diversification, CIL is well-positioned to meet its production and supply targets for the ongoing financial year, thereby reinforcing its role as a key player in India’s energy sector.
