Coal India Ltd (CIL) has announced plans to increase its annual research and development expenditure to ₹500 crore by 2029-30, as reported by Business Standard. The state-run miner will scale up research spending across mining, critical minerals, clean coal and energy-transition technologies. The company has planned R&D expenditure of ₹225 crore for 2026-27, rising to ₹350 crore in 2027-28, ₹400 crore in 2028-29 and ₹500 crore in 2029-30. This represents a significant increase from the company's actual expenditure of ₹61.31 crore in 2023-24, ₹245.38 crore in 2024-25 and ₹183.88 crore in 2025-26.
According to reports from Moneycontrol, Coal India is expected to benefit from the rise in coal prices in global markets. The company's shares have shown signs of recovery, indicating investor confidence in the sector's prospects. The global coal price surge presents a favorable environment for the state-owned mining giant to capitalize on improved market conditions.
As reported by Business Standard, CIL's 2026 R&D policy prioritises projects at Technology Readiness Level (TRL) 4 and above, indicating a greater focus on technologies that can move towards demonstration and commercial deployment. The company's current R&D portfolio comprises 20 projects with an approved outlay of ₹231 crore. Among the key areas being pursued is the development of an integrated graphite value chain, covering mining, beneficiation, purification, spheronisation, coating and production of anode materials. In collaboration with the Non-Ferrous Technology Development Centre (NFTDC), CIL has proposed a demonstration plant for coated spherical purified graphite (CSPG) with purity of at least 99.95 per cent.
According to Business Standard, CIL's diversification portfolio includes four coal-to-chemicals projects with a combined estimated project cost of around ₹69,346 crore. These comprise a 1.27 million tonne annual-capacity urea project at Talcher Fertilizers, a 0.66 million tonne annual-capacity ammonium nitrate project under Bharat Coal Gasification & Chemicals, and two synthetic natural gas projects. The company is also expanding into grid-scale energy storage with projects including a 187.5 MW/750 MWh battery energy storage system (BESS) at Choutuppal in Telangana and an 80 MW/320 MWh BESS portfolio across four locations in Odisha. CIL has commissioned around 550 MW of solar capacity and is developing a 20 MW AC grid-connected floating solar project at Chilwa Taal in Gorakhpur.
As reported by Moneycontrol, high costs weighed on the company's profitability in Q1 FY27. The company faced significant operational challenges during the first quarter of the current financial year, with cost pressures impacting its bottom line performance. Despite these headwinds, the company's market position remains strong as it prepares to capitalize on the improving demand scenario and benefits from rising global coal prices.
According to Moneycontrol, the improving demand scenario is expected to support Coal India's earnings recovery. The company's ability to benefit from rising global coal prices, combined with improved market conditions and its substantial R&D investment, positions it well for potential earnings growth. The combination of favorable market dynamics, operational improvements, and strategic technology development could drive better financial performance in upcoming quarters.
