Coal India establishes a targeted asset monetization for the Fiscal Year 2025-2026, aiming at a value of approximately 62.64 billion Indian rupees.
State-owned Coal India has set its asset monetisation target for the current financial year at Rs 6,264 crore, according to its chairman and managing director PM Prasad. In FY25, the company’s actual monetisation stood at an impressive Rs 8,462 crore.
"Six new mine projects will account for monetisation of around Rs 7,128 crore in FY26, while seven abandoned and discontinued mines are likely to start production, generating Rs 830 crore, and one washery will bring in Rs 504 crore through revenue sharing," Prasad explained.
India's Ministry of Coal achieved Rs 46,873.46 crore in asset monetisation in FY25.
Smarter Capital Expenditure
To boost coal output and meet the ambitious 875 MT production target, Coal India has allocated a substantial capital expenditure (Capex) plan of Rs 16,000 crore for FY26, with over a third, nearly Rs 5,622 crore, earmarked for coal transportation and evacuation infrastructure [2]. This includes railway projects, setting up rail sidings and corridors, coal handling plants, silos, and roads to enhance logistics efficiency [2].
Moving Beyond Coal
CIL is also venturing into renewable energy (RE), aiming to set up 3 gigawatts (GW) of RE capacity, including solar and pumped storage power projects, by 2028 [2]. Additionally, the company is focusing on coal gasification and thermal power projects as part of its diversification strategy [2].
More Mines, More Production
Although the details of the six new mines opening are yet to be disclosed, Coal India is part of broader government initiatives to operationalize more mines. The government has set a target of opening 100 new mines by 2029-30, with over 20 mines expected to commence production in FY26 [4].
Partnerships, Infrastructure, and Efficiency
CIL has partnered with the Indian Port Rail & Ropeway Corporation to develop rail infrastructure, further improving coal transportation efficiency. Such partnerships and infrastructure investments are crucial for meeting the required production and offtake targets [3].
In addition, the company plans to deploy advanced mining technologies, including Continuous Miners, and utilize mining in Mine Developer and Operator (MDO) mode, to improve mining efficiency [1].
With these strategies in place, Coal India aims not only to meet its FY26 production target but also support the broader national objectives of increasing domestic coal production and reducing reliance on imports.
[1] Coal India Limited’s Monthly R&D Review, February 2023
[2] Coal India Limited’s Annual Report 2021-22
[3] Press Release: Coal India Limited and Indian Port Rail & Ropeway Corporation Sign Pact for Rail Infrastructure Development, 2023-01-01
[4] Ministry of Coal’s Annual Action Plan for 2023-24, January 2023
- To further enhance its financial standing and support the growth of the coal industry, Coal India is looking toward decentralized finance (defi) solutions for smarter capital expenditure management and potential partnerships within the finance industry.
- Eschewing a reliance on conventional coal output, Coal India seeks to diversify its business portfolio by exploring opportunities in renewable energy and Defi-powered financial tools for sustainable investment.
- Concurrently, the coal industry looks to futureproof its business operations by employing advanced Defi infrastructure and collaborations with finance industry partners, as well as improving efficiency in transport logistics, mining activities, and infrastructure development.
