Coal India's first-half capex rises 27% to Rs 7,966 crore

Coal India Limited, the state-owned coal producer, spent about Rs 7,966 crore on capital projects in the first half of the financial year 2026-27 (April to September 2026), according to figures reported on Tuesday, October 27, 2026. That is about 27% more than the Rs 6,283 crore it spent in the same period last year, and 109% of its first-half target of Rs 7,286 crore. Most reports gave the figure as Rs 7,966 crore, while some gave Rs 7,996 crore. The company has an annual capital spending target of Rs 16,500 crore and has used more than 48% of it in six months.

Coal India is one of the country's biggest public sector companies, and coal remains a major fuel for India's power plants. How much the company invests, and where, therefore has a direct effect on India's energy supply. Spending ahead of target in the first half signals that the company is moving faster on projects that raise output and improve how coal is moved and handled.

The breakdown shows where the money is going. The biggest single item is mine infrastructure: railway sidings, rail corridors, coal handling plants and silos. These projects help load coal directly onto trains instead of trucks, which is cheaper, cleaner and faster. Better evacuation infrastructure reduces bottlenecks at mines and helps power plants receive steady supplies.

The Rs 739 crore spent on diversification is smaller but important for the company's future. Solar power, critical minerals such as those used in batteries, and coal gasification, which turns coal into gas for use in fertiliser, chemicals and fuels, are all areas where Coal India is trying to build new businesses as India's energy mix shifts towards cleaner sources over the coming decades.

Land acquisition, at Rs 2,033 crore, is also a large share. Acquiring land for new and expanding mines is often slow and sensitive, involving compensation and rehabilitation for affected families, so steady spending here points to expansion plans moving forward on the ground.

Short-term: Faster spending supports suppliers of mining machinery, rail and construction contractors, and local economies in the coal-mining districts where the projects are located. It also helps the government meet its public capital spending goals.

Long-term: Investment in rail-linked coal transport and new mines aims to secure fuel for power plants, while diversification spending builds options for when demand for coal eventually slows.

Who is affected: Power producers and electricity consumers, Coal India's employees and shareholders, equipment and construction suppliers, and communities in mining districts.

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