Coal India bets ₹50,000 crore on life beyond coal; goes big on gasification, critical minerals

New Delhi: Coal India (CIL) is pursuing an aggressive diversification strategy beyond its mainstay of coal mining.

The world's biggest producer of the fossil fuel is lining up nearly ₹50,000 crore in coal-gasification projects while scouting for overseas critical-mineral assets, particularly lithium, said B Sairam, chairman and managing director. It is also targeting 9.5 gigawatts (GW) of renewable capacity by FY30, aligning with its plan to capture new growth engines. "CIL remains strongly committed to the government's coal gasification push," Sairam told ET. "The ₹37,500-crore scheme will accelerate projects and support import substitution, energy security and value addition to domestic coal."

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He added that the company is exploring partnerships with technology providers, project developers and potential syngas consumers to establish a robust coal gasification ecosystem in India.

CIL's first commercial coal gasification project has moved into the execution phase, with the start of mechanical erection at Bharat Coal Gasification and Chemicals (BCGCL) at Odisha's Lakhanpur. Foundation bolts for the electrostatic precipitator have reached the site, while boiler and chimney materials have been dispatched by Bharat Heavy Electricals' (BHEL) manufacturing units. Engineering drawings are being progressively approved too.

BCGCL, a 51:49 joint venture between CIL and BHEL, is investing over ₹25,000 crore in the project with an annual capacity of 660,000 tonnes of ammonium nitrate. The project has received ₹1,350 crore under the Centre's ₹8,500-crore financial incentive scheme for coal and lignite gasification projects.

Two more gasification projects-in West Bengal with GAIL and Maharashtra with BPCL-are at the detailed project report and tendering stages. "Together, these three projects, involving a cumulative investment of about ₹50,000 crore, are expected to reduce the country's dependence on imported chemicals and natural gas," noted the CMD of the state-run miner.

CIL is also positioning itself in critical minerals. It has secured five assets, spanning graphite, rare earth elements and rare metals, and is evaluating opportunities in Chile, Argentina and Australia.

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"Chile is one of the key markets we are exploring for lithium assets," said Sairam. CIL is discussing a possible stake in a Chilean asset and has signed non-disclosure pacts with potential overseas partners. "We are hopeful that these discussions will progress favourably and that we will be able to conclude the deal," he added.

To facilitate overseas critical-mineral acquisitions and strengthen its international footprint, the company has incorporated CIL Global in Singapore. Renewables are another major growth pillar. CIL is targeting 9.5 GW of renewable capacity by FY30, with plans to integrate battery storage with new solar projects.