2026 to be 'year of reform and transformation' for Coal India: CMD

Kolkata, Jan 16 (PTI) Coal India Ltd (CIL) has designated 2026 as the "year of reform and transformation" with the state-run miner focusing on higher coal output, improved quality, technology upgrades and diversification to strengthen its long-term role in India's energy landscape, Chairman-cum-Managing Director B Sairam said on Friday.

Sairam said the miner is pursuing a 360-degree reform agenda that includes mechanised loading for precise quantity and quality, modernisation through digitalisation, improved safety standards and faster evacuation through dedicated rail infrastructure.

"The twin priorities are increased output and improved supplies of quality coal," Sairam told PTI in an interview, adding that dry fuel will remain "at the top of the energy mix" in meeting the country's energy aspirations in the near-to-medium term.

India's electricity demand continues to grow at a robust pace, with coal-based power generation accounting for around 70 per cent of total electricity output. Rising industrial activity and peak power requirements have kept coal supply and evacuation critical for energy security.

Coal India has invested in major rail lines in Chhattisgarh, Odisha and Jharkhand, which together account for nearly two-thirds of its one billion tonne production programme, the CMD said.

The company has also engaged mine developer-cum-operators (MDOs) to ramp up production and unlock coal from discontinued mines on a revenue-sharing basis, he said.

On energy transition, Sairam said the shift towards cleaner sources does not pose a pressure on Coal India's role, as India's rapidly growing energy demand leaves "sufficient growth potential for all forms of energy".

Considering that the country is on course to catch up the world's average on per capita energy consumption, coal is going to play an important role in this endeavour, Sairam noted.

"With the bulk of the generation, at least for the next two decades, to be met by coal, CIL's future is strong and it would continue to dominate India's broader energy landscape," he said.

The government policy has emphasised a calibrated and orderly energy transition, where coal continues to play a stabilising role alongside renewable sources to meet base-load power requirements.

Sairam said CIL is also stepping up its non-coal initiatives to consolidate its position as a diversified energy player.

These include the installation of 3,000 MW of solar power capacity by FY'28 to support the company's net-zero aspirations, and coal gasification projects in partnership with BHEL, GAIL and BPCL for the production of ammonium nitrate and synthetic natural gas.

Public sector enterprises, including Coal India, are increasingly investing in renewable energy to offset operational emissions and reduce energy costs for mining activities, while aligning with long-term climate commitments.

In a first, Coal India has emerged as the preferred bidder for three critical mineral blocks in India, including graphite and vanadium, and is also exploring overseas acquisitions in the segment, the CMD said.

The company has also entered into a joint venture with Damodar Valley Corporation to set up a 1,600 MW coal-fired power plant as a brownfield expansion at DVC's Chandrapura thermal power station in Jharkhand, with commercial operations expected in 2031-32.

"As energy leader, Coal India is fully geared up to play its assertive role in this mission," Sairam said. PTI BSM BDC