Coal India Limited announces ambitious Business Development portfolio for diversification beyond mining

State owned coal giant Coal India Limited (CIL) announced its Business Development portfolio on Sunday.

According to the statement released by the Ministry of Coal, the company’s Business Development portfolio is aimed at expansion beyond conventional coal-mining operations, with five mutually reinforcing 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 is expected to build a diversified, technology-driven portfolio spanning energy, minerals, advanced materials and research and development (R&D), said the release.


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According to the Ministry, the investments include nation-wide projects, such as four coal-to-chemicals initiatives at nearly ?69,346 crore, 2×800 MW Chandrapura ultra-supercritical expansion, around 550 MW of commissioned solar capacity, grid-scale Battery Energy Storage System (BESS) initiatives as well as ventures in critical minerals and downstream materials.

Strategic Context and Business Development

The presser noted that CIL’s operations across the nation, project-development experience, government relationships, land and coal resources, procurement systems, balance sheet and partnership capabilities would make it a strong choice for diversification.

It said the decision was taken with the guiding principle of “diversification with purpose” to energy and mineral security, import substitution, indigenous technology, low-carbon growth, efficient public-asset utilisation and resilient domestic manufacturing, while maintaining commercial sustainability and risk-adjusted returns.

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Coal Gasification, Coal-to-Chemicals and Underground Coal Gasification

The Ministry said coal gasification converts coal into synthesis gas, or syngas, which can be used to produce synthetic natural gas (SNG), ammonia, urea, ammonium nitrate, methanol and other chemicals. The process could unlock greater chemical value from coal while supporting import substitution.

CIL's Business Development portfolio includes four major initiatives: Talcher Fertilisers Ltd, with a capacity of 1.27 MMTPA of urea and an estimated project cost of Rs 19,062.22 crore; Bharat Coal Gasification & Chemicals Ltd, with a capacity of 0.66 MMTPA of ammonium nitrate and an estimated project cost of Rs 25,015.89 crore; Coal Gas India Ltd, with a capacity of 633.6 million Nm³ per year of SNG and an estimated project cost of Rs 13,052.81 crore; and the CIL-BPCL Chandrapur coal-to-SNG initiative, with a capacity of 633.6 million Nm³ per year and an estimated project cost of Rs 12,214.86 crore.

The initiatives include technology priorities such as adapting processes to high-ash Indian coal, process optimisation, localisation of critical equipment, advanced process control and digital twins, predictive maintenance, and improved water, ash and emissions management.

Projects would be replicated only after operating data and commercial performance had been validated, the statement noted.

The Ministry said Underground Coal Gasification (UCG) offers an opportunity to convert deep-seated or otherwise unmineable coal into syngas. However, as the technology has not yet demonstrated commercial viability globally, CIL is pursuing a phased pilot project at the Kasta West Block of Eastern Coalfields Limited (ECL). Phase I was completed on 31 May 2025, while Phase II commenced on 20 June 2025.

The second phase covers detailed engineering, directional drilling, injection and production wells, and ignition and control systems, with completion scheduled for 2026.

Thermal Power, Solar and Floating Solar

According to the release, CIL and Damodar Valley Corporation (DVC), through a 50:50 joint venture, are implementing a 2×800 MW ultra-supercritical brownfield expansion at Chandrapura in Jharkhand.

It added that high-efficiency generation, predictive maintenance, flexible plant operation, emission controls, water recycling and scientific utilisation of ash are the future foci of the portfolio.

It said the coal company commissioned 550 MW of solar capacity, while rooftop, ground-mounted, captive, interstate and market-linked projects are under development

CIL is pursuing two models: captive solar projects to reduce power costs and the carbon footprint, and utility-scale projects for commercial renewable-power generation, said the presser.

According to the Ministry, solar projects would be selected based on lifecycle and risk-based assessments covering resource quality, transmission, land availability, storage, curtailment, offtake and delivered cost.

It also said that digital monitoring and hybrid storage solutions will support project performance and operational flexibility.

The statement further said CIL is developing a 20 MW 20 MW AC grid-connected floating solar project at Chilwa Taal, Gorakhpur.

It said floating solar offered a land-efficient option for suitable water bodies. However, noted that site-specific assessment and standard screening will be required to address risks related to water levels, bathymetry, wind and waves, anchoring, corrosion, maintenance, safety and ecology.

Battery Energy Storage Systems

The release said, CIL’s projects included the TGGENCO Choutuppal project in Telangana, which is a Battery Energy Storage System (BESS).

The project would support renewable-energy integration, peak-demand management, grid flexibility and improved transmission utilisation with an established capacity of 187.5 MW/750 MWh and a four-hour duration.

The coal company was awarded the project, while EPC selection and long-term operation and maintenance arrangements are in progress.

According to the Ministry, an Odisha BESS portfolio of 80 MW/320 MWh across four locations is also under development by CIL. Capacity has been secured through the Solar Energy Corporation of India (SECI), and the EPC tender has been issued.

The statement noted that the commercial success of BESS projects would depend on their high availability, dependable state-of-charge management, compliance with dispatch requirements and advance planning for augmentation to establish commercial success

Critical Minerals and the Integrated Graphite Value Chain

The Ministry said CIL’s domestic investments include graphite assets in Madhya Pradesh and Chhattisgarh, as well as rare earth element (REE) and rare-metal opportunities in Andhra Pradesh and Maharashtra.

According to the statement, areas of interest include resource definition, geometallurgy, beneficiation, recovery, product specification, waste management and market linkage. The initiatives are supported through collaborations with Indian Rare Earths Limited (IREL), the Non-Ferrous Technology Development Centre (NFTDC), Curtin University, Hindustan Copper and other state entities. Wherein overseas investments will be evaluated through stage-gated technical and financial due diligence.

The coal company, according to the release, aims to establish an integrated graphite value chain covering mining, beneficiation, purification, spheronisation and coating, and the production of anode materials.

It said that a demonstration plant for coated spherical purified graphite (CSPG) with a purity of at least 99.95% has been proposed as a qualification platform in collaboration with NFTDC.

Further industrial expansion would follow consistent product quality, process performance and customer qualification.

Digital and Institutional Architecture

According to the Coal Ministry, the requirement of common digital architecture across mining, process industries, power, renewable energy, grid services and advanced materials. Key elements will include a secure enterprise data room, standard project financial models, GIS-based opportunity mapping, portfolio dashboards tracking project stage, approvals, investment, schedule, risks and returns, and digital engineering and asset-information requirements from the tender stage.

Therefore a common stage-gate model was initiated to cover opportunity screening, concept validation, feasibility, contracting, demonstration and commercial operation.

The company, according to the release, will use joint ventures and strategic partnerships to access specialised technologies and markets, with emphasis on technology transfer, localisation, measurable deliverables and time-bound milestones.

Risk Management, Key Performance Indicators and Way Forward

According to the release, the state owned coal company will adopt a proactive, stage-gated approach to risk management covering technology and resource risks; market and financial risks; execution and cost risks; environmental, social and governance (ESG) and supply-chain risks; cyber and operational risks; and capability-related risks.

Wherein, the firm’s risk responses would include pilot validation and independent review; customer qualification and offtake arrangements; robust detailed project reports (DPRs) and contingencies; lifecycle assessment and localisation; operational technology security and incident response; and targeted training and knowledge transfer.

The release said the company would utilise key performance indicators to cover project delivery, operational availability and quality, renewable-energy capacity in MW and storage capacity in MWh, mineral-resource advancement and downstream qualification, import substitution and indigenous technology, risk-adjusted returns and cash generation, and ESG outcomes relating to emissions, water, waste, restoration, safety and community impact.

CIL’s Business Development Division would function as the enterprise integrator for technology-led diversification, wherein its obligations would include identifying opportunities, structuring partnerships, validating technologies, establishing commercial models, securing approvals and moving projects into disciplined execution, said the presser.

It further said the division’s immediate priorities include preparing a unified diversification and technology roadmap with accountable sponsors, standard technical, financial and ESG evaluation templates, and demonstration projects with predefined success criteria and independent validation.