SF Prep Notes

Coal India outlines diversification into coal gasification, power, renewables and critical minerals

On 20 September 2026, the Coal Ministry said Coal India Limited (CIL) is building a diversified portfolio across five platforms, including about ₹69,346 crore in four coal-to-chemicals projects.

Summary

Coal India Limited's business development portfolio rests on five platforms: coal gasification and coal-to-chemicals; thermal power; renewable energy and storage; critical minerals and advanced materials; and diversified minerals including iron ore. The four coal-to-chemicals projects are Talcher Fertilizers (1.27 MMTPA urea), Bharat Coal Gasification & Chemicals (0.66 MMTPA ammonium nitrate), Coal Gas India (synthetic natural gas) and the CIL-BPCL Chandrapur coal-to-SNG project. The portfolio also includes a 2×800 MW Chandrapura ultra-supercritical expansion and about 550 MW of commissioned solar capacity. Coal India is running a phased Underground Coal Gasification pilot at the Kasta West Block of Eastern Coalfields; Phase I was completed on 31 May 2025.

Key facts

Five platforms
Coal gasification/coal-to-chemicals; thermal power; renewables and storage; critical minerals and advanced materials; diversified minerals
Coal-to-chemicals
~₹69,346 crore across four projects
Talcher Fertilizers
1.27 MMTPA urea; ~₹19,062 crore
Power
2×800 MW Chandrapura ultra-supercritical expansion; ~550 MW solar commissioned
UCG pilot
Kasta West Block, Eastern Coalfields Ltd — Phase I done 31 May 2025; Phase II from 20 Jun 2025

Practice MCQs 4 questions

Q1 Advanced

As per the Coal Ministry in September 2026, roughly how much is the total estimated cost of Coal India's four coal-to-chemicals projects?

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Correct answer: C — ₹69,346 crore

The four coal-to-chemicals initiatives together account for about ₹69,346 crore.

Q2

Talcher Fertilizers Ltd, a Coal India coal-to-chemicals project, is designed to produce which product?

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Correct answer: A — Urea

Talcher Fertilizers has a capacity of 1.27 MMTPA of urea; Bharat Coal Gasification & Chemicals is the ammonium nitrate project.

Q3 Advanced

Coal India's phased Underground Coal Gasification (UCG) pilot is being carried out at which site?

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Correct answer: D — Kasta West Block, Eastern Coalfields

The UCG pilot is at the Kasta West Block of Eastern Coalfields Ltd; Phase I was completed on 31 May 2025.

Q4 Advanced

Consider the following about Coal India's diversification portfolio (September 2026): 1. It includes a 2×800 MW ultra-supercritical expansion at Chandrapura. 2. It includes about 5,500 MW of commissioned solar capacity. Which of the above is/are correct?

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Correct answer: A — 1 only

Only 1 is correct. Coal India's commissioned solar capacity is about 550 MW, not 5,500 MW.

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