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.

Coal India Limited has issued comprehensive tax guidelines to shareholders regarding the third interim dividend of ₹5.50 per equity share for FY 2025-26, with the record date set for February 18, 2026. The communication outlines detailed Tax Deduction at Source (TDS) provisions and procedural requirements for different categories of shareholders.

Dividend Payment and Electronic Mode Mandate

Following SEBI's amendment to Listing Obligations and Disclosure Requirements regulations dated November 18, 2025, the company will exclusively use RBI-approved electronic modes for dividend payments. Physical dividend instruments such as warrants, cheques, or demand drafts will no longer be issued.

Shareholders are required to update their KYC details in demat accounts to facilitate direct bank transfers. This follows earlier interim dividends of ₹5.50 per share declared on July 31, 2025, and ₹10.25 per share declared on October 29, 2025.

Tax Deduction Framework for Resident Shareholders

Under the Income Tax Act, 1961, as amended by the Finance Act, 2020, dividends are taxable in shareholders' hands. The company will deduct tax at source under sections 194, 195, and 196D based on shareholder status and category.

Resident shareholders can claim exemption by submitting Form 15G (individuals) or Form 15H (individuals aged 60+), provided they meet eligibility conditions. The forms must reflect total expected dividend income from Coal India during the current financial year.

Non-Resident Shareholder Provisions

Non-resident shareholders, including Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI), face a standard TDS rate of 20% plus applicable surcharge and cess. However, they can opt for lower tax treaty rates by submitting required documentation.

Non-residents from notified jurisdictional areas under Section 94A face a higher TDS rate of 30% plus surcharge and cess. Sovereign wealth funds and pension funds notified under section 10(23FE) are exempt from TDS.

Digital Tax Portal and Submission Process

Coal India has introduced a dedicated web portal at https://taxportal.coalindia.in for document submission, operational from February 13-20, 2026. All tax-related documents, including Forms 15G/15H, PAN copies, and tax residency certificates, must be submitted through this portal.

The company emphasizes that no communications regarding tax determination will be entertained after the cut-off date, and reserves the right to reject incomplete or discrepant documents. TDS certificates will be available exclusively through the online portal, with no separate mailing.

Compliance and Advisory Notes

Shareholders must ensure Aadhar-PAN linkage to avoid higher TDS rates under Section 206AA. The company will use Income Tax Department functionality to determine PAN validity and applicable rates. For shares held in multiple accounts under single PAN, the higher applicable tax rate will apply to entire holdings.

The communication includes a disclaimer stating that the information does not constitute tax or legal advice, recommending shareholders consult their tax advisors for specific circumstances. This comprehensive framework ensures regulatory compliance while facilitating efficient dividend distribution through electronic channels.