Coal India Plans for Evacuation Infrastructure despite coal demand slowdown

State-owned Coal India Ltd (CIL) is progressing towards the production and evacuation infrastructure plans under its capital expenditure programme for the current financial year. However, the coal demand has been remained sluggish in the first quarter of FY 2025-26.

 The coal PSU has set the benchmark for the largest share of Rs 5,622 crore which is about 35% of the total proposed Rs 16,000 crore capex in FY26 for coal transportation and evacuation infrastructure, including rail sidings, corridors, coal handling plants, silos and roads.

According to an official, the investments are crucial to bolster mechanised coal evacuation capacity from the present 151 million tonnes per annum (MTPA) to 994 MTPA by FY2028-29 under first mile connectivity.

 

The Coal PSU has reported a decline in performance in the June quarter, with production falling 3% to 183.32 million tonnes and offtake slipping 4% to 191 million tonnes.

The official stated that there are signs of demand improvement as company has carried out various reforms for coal consumers. Coal India despite this remains committed to its long-term roadmap of achieving 1 billion tonnes of production by FY 2028-29.

 

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Additionally, with evacuation infrastructure, the miner PSU has been continuing to invest in land acquisition, heavy earth moving equipment, washeries and renewable projects, and aims to ensure supply reliability while gradually diversifying its portfolio.

Coal India Ltd has meanwhile ramped up its renewable energy initiatives by commissioning 114 MW solar capacity in FY 2024-25 and the cumulative installed solar capacity to 209.08 MW as of March 2025.

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