Coal India Expands Beyond Mining With Gasification, Power and Critical Minerals Push

Coal India Limited is moving beyond its traditional coal-mining operations, assembling a technology-driven business portfolio that spans energy, minerals, advanced materials and research and development. The company's Business Development portfolio is structured around 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 pipeline already includes projects of national scale. Four coal-to-chemicals initiatives carry a combined estimated cost of roughly ₹69,346 crore. These are Talcher Fertilizers Ltd. (1.27 MMTPA of urea, about ₹19,062.22 crore), Bharat Coal Gasification & Chemicals Ltd. (0.66 MMTPA of ammonium nitrate, about ₹25,015.89 crore), Coal Gas India Ltd. (633.6 million Nm³ per year of synthetic natural gas, about ₹13,052.81 crore) and the CIL-BPCL Chandrapur coal-to-SNG initiative (633.6 million Nm³ per year, about ₹12,214.86 crore).

Coal gasification converts coal into syngas, a feedstock for synthetic natural gas, ammonia, urea, ammonium nitrate, methanol and other chemicals — a route the company sees as unlocking chemical value from coal while supporting import substitution. Technology priorities include adapting processes to high-ash Indian coal, localising critical equipment, advanced process control and digital twins, predictive maintenance, and better management of water, ash and emissions. Replication of projects will be considered only after operating data and commercial performance are verified.

Underground Coal Gasification, which could convert deep-seated or unmineable coal into syngas, is being pursued through a phased pilot at the Kasta West Block of Eastern Coalfields Limited. Phase I was completed on 31 May 2025 and Phase II began on 20 June 2025, covering detailed engineering, directional drilling, injection and production wells, and ignition and control systems, with completion scheduled for 2026. The technology is not yet commercially proven globally.

In thermal power, Coal India and Damodar Valley Corporation are implementing a 2×800 MW ultra-supercritical brownfield expansion at Chandrapura, Jharkhand, through a proposed 50:50 joint venture, with DVC facilitating power sales. Future focus areas include high-efficiency generation, predictive maintenance, flexible plant operation, emission controls, water recycling and scientific ash utilisation.

On the renewables side, about 550 MW of solar capacity has been commissioned, while rooftop, ground-mounted, captive, interstate and market-linked projects are under development. The company is pursuing captive solar to cut power costs and carbon footprint alongside utility-scale projects for commercial generation, with project selection based on lifecycle and risk assessments covering resource quality, transmission, land, storage, curtailment, offtake and delivered cost. A 20 MW AC grid-connected floating solar project is being developed at Chilwa Taal, Gorakhpur.

Battery Energy Storage System initiatives include the TGGENCO Choutuppal project in Telangana at 187.5 MW/750 MWh with a four-hour duration, awarded to Coal India, where EPC selection and long-term operation and maintenance arrangements are in progress. An Odisha portfolio of 80 MW/320 MWh across four locations, also of four-hour duration, has secured capacity through the Solar Energy Corporation of India, with the EPC tender issued.

In critical minerals, domestic opportunities include graphite assets in Madhya Pradesh and Chhattisgarh and rare earth element and rare-metal prospects in Andhra Pradesh and Maharashtra. Focus areas span resource definition, geometallurgy, beneficiation, recovery, product specification, waste management and market linkage, supported by collaborations with Indian Rare Earths Limited, the Non-Ferrous Technology Development Centre, Curtin University, Hindustan Copper and state entities. Overseas opportunities will be evaluated through stage-gated technical and financial due diligence. The company aims to build an integrated graphite value chain covering mining, beneficiation, purification, spheronisation and coating, and anode materials, with a proposed demonstration plant for coated spherical purified graphite of at least 99.95% purity in collaboration with NFTDC.

A common digital architecture is planned across mining, process industries, power, renewables, grid services and advanced materials, including a secure enterprise data room, standard project financial models, GIS-based opportunity mapping, portfolio dashboards and digital engineering requirements from the tender stage. A common stage-gate model will cover opportunity screening, concept validation, feasibility, contracting, demonstration and commercial operation, with joint ventures and strategic partnerships used to access specialised technologies and markets.