Coal India’s Q1 Capex Rises by 16.64% to Rs 3,399 Crore

New Delhi: State-owned CIL on Tuesday said its capital expenditure rose by 16.64 per cent to Rs 3,399 crore in the first quarter of the ongoing financial year, with land acquisition and related rehabilitation & resettlement expenses accounting for nearly one-fourth of the total capex.

The capital expenditure by Coal India Ltd (CIL) was Rs 2,914 crore during the corresponding period of the previous financial year.

“Land acquisition and related rehabilitation & resettlement (R&R) activities accounted for the highest expenditure during the quarter at Rs 804 crore, constituting nearly one-fourth of the total capex,” Coal India said in a statement.

Timely land acquisition is a critical prerequisite for coal mining, as mining projects cannot commence or expand without it, regardless of the availability of coal reserves.

Reflecting on its strategic importance, land acquisition and related activities have been allocated the highest capex target of Rs 4,173 crore out of the company’s total annual capex target for 2026-27.

Coal India also continued to strengthen its coal evacuation infrastructure by investing Rs 754 crore in developing railway sidings and rail corridors.

In addition, Rs 195 crore was spent on the construction of coal handling plants, silos, weighbridges and roads, taking the cumulative expenditure on coal evacuation infrastructure to Rs 949 crore during the first quarter.

Capital expenditure under the plant and machinery segment stood at Rs 819 crore, covering procurement of heavy earth moving machinery, construction and expansion of washeries, and other plant and equipment-related activities. This category also accounted for nearly one-fourth of the company’s total capex during the quarter.

“Expenditures on land acquisition, development of coal evacuation infrastructure, and plant & machinery constitute the major components of our capital expenditure.

“Together, these three broad heads accounted for over 75 per cent of the total capex incurred during the first quarter. These strategic investments have laid a strong foundation for the company to achieve its production and supply targets for the ongoing fiscal,” Coal India Chairman B Sairam said.

As part of its ongoing diversification into clean energy, Coal India incurred a capital expenditure of Rs 278 crore on its solar projects during the quarter, while investments in the company’s joint ventures amounted to Rs 207 crore, reinforcing its commitment to expanding its presence in renewable energy and allied businesses.

Coal India had achieved a capital expenditure of Rs 19,607 crore during 2025–26, surpassing its annual target of Rs 16,000 crore.

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