Coal India Ltd (CIL) increased its capital expenditure by 27% year-on-year to ₹7,966 crore in the first half of FY27, compared with ₹6,283 crore in the corresponding period last fiscal, as the state-owned coal miner stepped up investments in mining infrastructure, land acquisition and diversification projects.
The expenditure exceeded the H1 FY27 target of ₹7,286 crore by 9.3%, achieving 109% of the planned outlay. It also accounted for more than 48% of the company’s annual capital expenditure target of ₹16,500 crore.
The investment push is aimed at strengthening mining operations, improving coal evacuation infrastructure and supporting the expansion and operational readiness of projects.
Mine infrastructure and land acquisition lead spending
Mine infrastructure development attracted the largest share of capital expenditure at ₹2,152 crore during April-September FY27. Investments covered railway sidings and corridors, coal handling plants, silos and weighbridges to strengthen coal transportation and handling capacity.
Land acquisition accounted for another ₹2,033 crore, while expenditure on mine development exceeded ₹1,000 crore.
Together, these investments are intended to improve mining infrastructure and support operational expansion as Coal India works towards its production and supply targets for the current financial year.
Machinery investments support mining efficiency
Capital expenditure under the plant and machinery segment stood at ₹1,394 crore during the first half. This included spending on heavy earth-moving machinery (HEMM), washeries and other equipment.
Of this, ₹452 crore was allocated to HEMM procurement to strengthen mining operations and improve operational efficiency.
The investment in machinery assumes importance as the company continues to develop mining capacity and supporting infrastructure to meet coal supply requirements.
Diversification attracts over ₹739 crore
Coal India also invested more than ₹739 crore in diversification initiatives spanning solar energy, critical minerals, coal gasification and thermal power generation.
Mine infrastructure, plant and machinery, land acquisition and diversification together accounted for over 79% of the company’s total capital expenditure during H1 FY27.
The spending pattern highlights Coal India’s continued focus on its core mining operations while allocating capital to alternative energy and other businesses. The investments are expected to strengthen operational capabilities and support the company’s production and supply commitments