Coal India 's subsidiary South Eastern Coalfields Limited (SECL) has made a significant discovery by identifying seven mine dumps suitable for rare earth element exploration. This development marks an important step in the company's efforts to diversify its operations beyond traditional coal mining activities.

Strategic Diversification Initiative

The identification of these seven mine dumps represents a strategic move by Coal India to explore new business opportunities in the critical minerals sector. Rare earth elements are essential materials used in various high-technology applications, making them increasingly valuable in today's economy.

Potential Business Impact

This discovery could potentially create new revenue streams for Coal India, complementing its core coal mining operations. The exploration of rare earth elements from existing mine dumps also presents an environmentally conscious approach to resource extraction, as it involves utilizing previously disturbed areas rather than developing new mining sites.

Industry Significance

Rare earth elements play a crucial role in manufacturing components for electronics, renewable energy systems, electric vehicles, and defense equipment. The growing demand for these materials, particularly in the context of India's push toward renewable energy and technological advancement, makes this discovery particularly relevant for Coal India's long-term growth strategy.

The company's move into rare earth exploration aligns with broader industry trends where traditional mining companies are seeking to diversify their portfolios to include critical minerals that are essential for modern technology and green energy transitions.

Coal India Limited has demonstrated remarkable progress in its solar power initiatives, with capital expenditure on solar projects reaching Rs.961 crores till January FY26. This substantial investment underscores the Maharatna company's commitment to diversifying its energy portfolio and transitioning toward cleaner energy sources.

Outstanding Financial Performance

The solar capex achievement represents exceptional growth across multiple metrics:

The company has not only exceeded its progressive target of Rs.729 crores till January 2026 but has also surpassed the entire FY26 capex target of Rs.957 crores under solar projects, demonstrating accelerated execution capabilities.

Cost Optimization and Market Dynamics

The solar power sector has witnessed favorable cost dynamics, with the current cost of setting up 1 MW of solar capacity ranging between Rs.4.00 crores to Rs.4.50 crores. This represents a significant reduction from the earlier cost structure of Rs.5.50 crores to Rs.6.00 crores per MW, enhancing project economics and return potential.

Strategic Vision and Net-Zero Commitment

Coal India is positioning solar power as a cornerstone of its diversification strategy. A senior company executive emphasized that solar power ranks high on CIL's diversification portfolio, noting that among cleaner energy sources, solar will play a pivotal role in the future. The company is actively participating in solar auctions while laying groundwork to remain relevant in the country's evolving energy sector.

The company has set an ambitious target of becoming a Net-Zero entity through installation of 3,000 MW of renewable solar capacity by FY28.

Current Capacity and Expansion Pipeline

Major Upcoming Projects

Beyond the current installations, Coal India is actively developing substantial capacity through strategic partnerships:

• 875 MW plant with Rajasthan Rajya Vidyut Utpadan Nigam Limited
• 500 MW capacity plant through Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (phased implementation)
• 20 MW floating solar plant in Gorakhpur (bidding process initiated)

The company is also participating in Tariff-Based Competitive Bidding (TBCB) tenders for solar power development across multiple states, while Battery Energy Storage System (BESS) technology remains on the company's strategic radar for future implementation.