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Coal India increased capital expenditure in the first half of the 2027 financial year, exceeding the target by 9%
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Business Standard
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Coal India increased capital expenditure in the first half of the 2027 financial year, exceeding the target by 9%

The state-owned mining company Coal India Ltd (CIL) reported on Tuesday that its capital expenditure (capex) for the first half of the current financial year (April-September) grew by 27 percent, reaching ₹7,996 crore compared to ₹6,283 crore in the same period last year.

The company stated in its announcement that these expenditures exceeded the first-half target of ₹7,286 crore, amounting to 109 percent of the planned expenditure for the period, and also more than 48 percent of the annual capital expenditure target of ₹16,500 crore.

The capital expenditure figures reflect the company's continuous focus on strengthening mining infrastructure, land acquisition, procurement of heavy earthmoving machinery (HEMM), and advancing diversification projects.

Key Investment Areas

Mine infrastructure development was the largest area of investment for CIL in the first half of 2026-27, receiving ₹2,152 crore. These funds were directed towards strengthening coal transportation and processing infrastructure, including investments in railway lines and corridors, coal receiving facilities, silos, and weighbridges.

Land acquisition was also a significant expense, totaling ₹2,033 crore during the reporting period. Furthermore, over ₹1,000 crore was spent on mine development to support the expansion and operational readiness of mining projects.

Capital expenditure in the plant and equipment segment reached ₹1,394 crore. This amount covered investments in HEMM, washing plants, and other equipment. Of this, ₹452 crore was allocated for the procurement of HEMM to enhance operational efficiency and strengthen mining activities.

During this period, CIL also advanced its diversification initiatives, investing over ₹739 crore in projects such as solar energy, critical minerals, coal gasification, and thermal power generation.

Mine infrastructure, plants and equipment, land acquisition, and diversification remained the main components of CIL's capital expenditure, collectively accounting for over 79 percent of total capital expenditure for the period from April to September 2026-27. The company noted that these investments are intended to strengthen production capabilities and support the targets for mining and supply in the current financial year.

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BCGCL begins construction of Rs 25,000 crore coal gasification project in Odisha
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business-standard.com

BCGCL begins construction of Rs 25,000 crore coal gasification project in Odisha

Bharat Coal Gasification and Chemicals Ltd (BCGCL), a joint venture between Coal India Ltd (CIL) and BHEL, has commenced earthworks on its Rs 25,000 crore coal gasification project in the state of Odisha. According to Managing Director Piyush Kumar on Thursday, most tenders for the project have already been awarded.

This development is significant in the context of the country's goal to establish 100 million tonnes of coal gasification capacity by 2030 under the National Coal Gasification Mission. The mission aims to convert coal into chemicals and reduce dependence on imports such as methanol, ammonia, urea, and LNG.

Piyush Kumar stated during the Gasification India 2026 event, organized by Mission Energy Foundation, that they are progressing with the joint venture between BHEL and Coal India, which is BCGCL, and expressed delight over the start of earthworks, noting that most tenders have been awarded and construction has begun.

BCGCL, where CIL holds a controlling stake of 51 percent and Bharat Heavy Electricals Ltd (BHEL) holds the remaining 49 percent, was established to develop a modern project for converting coal into ammonium nitrate.

Kumar clarified that contracts worth approximately Rs 15,000 crore have already been signed, while tenders for the remaining work have yet to be announced. The rest of the project cost includes overheads such as interest, depreciation, and land-related expenses.

He also reported that out of the total amount of Rs 25,000 crore, Rs 15,000 crore has already been allocated to works: Rs 10,000 crore to BHEL, and Rs 5,000 crore to L&T.

The project aims to produce approximately 0.66 million tonnes of technical ammonium nitrate annually through coal gasification and is one of the country's innovative commercial initiatives utilizing domestically developed patented pressurized fluidized bed gasification technology for chemical production.

Furthermore, Kumar noted that the work is divided into four main blocks. BHEL is responsible for the coal gasification and syngas purification packages, while Larsen & Toubro (L&T) handles the ammonia synthesis and ammonium nitrate production packages.

He explained that after purification, the gas will be converted into ammonia, and then the ammonia will become nitric acid and ammonium nitrate. The packages related to ammonia and ammonium nitrate are under L&T's purview.

The project is being implemented in Odisha and has received single-window clearance from the state government's apex body.

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