Coal India Ltd (CIL) is expanding beyond its traditional coal-mining business with a large diversification programme spanning coal-to-chemicals, thermal power, renewable energy, battery storage, critical minerals, advanced materials and technology-led research.
The company’s Business Development portfolio is structured around five platforms — coal gasification and coal-to-chemicals, thermal power, renewable energy and storage, critical minerals and advanced materials, and diversified minerals including iron ore.
The portfolio already includes about ₹69,346 crore of investments across four coal-to-chemicals initiatives, a proposed 2×800 MW ultra-supercritical expansion at Chandrapura, around 550 MW of commissioned solar capacity and a growing pipeline of battery storage and critical-mineral projects.
From coal to chemicals
Coal gasification is emerging as a key diversification area for CIL. The technology converts coal into synthesis gas, or syngas, which can be used to produce synthetic natural gas, ammonia, urea, ammonium nitrate, methanol and other chemicals.
CIL’s four major coal-to-chemicals projects include Talcher Fertilizers, with 1.27 MMTPA of urea capacity and an estimated project cost of ₹19,062.22 crore; Bharat Coal Gasification & Chemicals, with 0.66 MMTPA of ammonium nitrate capacity at ₹25,015.89 crore; Coal Gas India, with annual SNG capacity of 633.6 million Nm³ at ₹13,052.81 crore; and the CIL-BPCL Chandrapur coal-to-SNG initiative, also with 633.6 million Nm³ annual capacity and an estimated cost of ₹12,214.86 crore.
CIL is focusing on adapting gasification technologies to high-ash Indian coal, localisation of critical equipment, process optimisation and digital technologies such as advanced process control and digital twins.
The company is also testing underground coal gasification (UCG), which could unlock deep-seated or otherwise unmineable coal resources. A phased pilot is underway at the Kasta West Block of Eastern Coalfields Ltd, with the second phase scheduled for completion in 2026.
Renewable energy and storage
CIL is simultaneously building a renewable-energy portfolio. Around 550 MW of solar capacity has already been commissioned, while rooftop, ground-mounted, captive, interstate and market-linked projects are under development.
The company is pursuing captive solar to lower electricity costs and its carbon footprint, alongside utility-scale projects for commercial renewable-power generation. Project selection will consider factors including transmission availability, land, storage requirements, curtailment, offtake and delivered cost.
CIL is also developing a 20 MW AC floating solar project at Chilwa Taal in Gorakhpur.
Battery Energy Storage Systems are another emerging business. The company has secured a 187.5 MW/750 MWh, four-hour BESS project at Choutuppal in Telangana, while an 80 MW/320 MWh portfolio across four locations in Odisha is also being developed.
Critical minerals become strategic focus
CIL is also looking beyond coal towards minerals needed for batteries, electric vehicles, renewable-energy systems, electronics, aerospace and defence.
The company is evaluating graphite assets in Madhya Pradesh and Chhattisgarh, along with rare earth element and rare-metal opportunities in Andhra Pradesh and Maharashtra. Its approach covers resource definition, beneficiation, recovery, product development and market linkage.
A key objective is to establish an integrated graphite value chain covering mining, beneficiation, purification, spheronisation, coating and production of anode materials.
In collaboration with the Non-Ferrous Technology Development Centre, CIL has proposed a demonstration plant for coated spherical purified graphite with purity of at least 99.95%. Commercial scale-up will depend on product consistency, process performance and customer qualification.
R&D spending set to rise
CIL is complementing its diversification strategy with a larger technology and R&D ecosystem. Its R&D framework, which traces its origins to the Standing Committee on Science and Technology established in 1975, now operates under independent R&D Policy and Guidelines issued in 2026, with priority given to projects at Technology Readiness Level 4 and above.
The company supports Centres of Excellence at IIT Madras, IIT Hyderabad and IIT (ISM) Dhanbad, covering sustainable energy, clean coal, Mining 4.0, IoT, smart mines, immersive technologies, automation and innovation.
CIL’s current R&D portfolio comprises 20 projects with an approved outlay of ₹231 crore. R&D expenditure rose from ₹61.31 crore in FY2023-24 to ₹245.38 crore in FY2024-25 and ₹183.88 crore in FY2025-26. Planned spending is ₹225 crore in FY2026-27, rising to ₹500 crore by FY2029-30.
The broader strategy is to move technologies from research and pilot stages to commercial deployment through stage-gated investment, strategic partnerships, technology transfer and measurable performance benchmarks.
For CIL, the diversification push represents a shift from being primarily a coal producer towards becoming a broader energy, minerals, materials and technology enterprise, with the emphasis increasingly on commercial viability, indigenous capabilities and new growth platforms.