New Delhi warns Coal India lagging on solar projects 3 GW target
New Delhi has raised concerns over Coal India Limited’s slow progress in expanding its solar energy capacity, revealing that the company and its seven subsidiaries have achieved just 4.08% of the 3 GW target set for 2024. Despite government directives to accelerate renewable adoption, project execution has lagged, with only 208 MW operational and 510 MW under development, highlighting challenges in meeting India’s broader Net Zero commitments and underscoring the urgency for faster solar deployment across coal operations.
CIL has set an ambitious renewable energy goal of 9.5 GW by 2030, yet current performance suggests the target may be out of reach. In 2024, the government instructed coal companies to adopt rooftop and ground-mounted solar solutions, utilise de-coaled land, and offer surplus property for green hydrogen and pumped storage projects. Analysts suggest that delays at CIL mirror systemic challenges in the public sector’s transition to low-carbon energy.According to CIL’s annual report 2024–25, the company commissioned 114 MW of ground-mounted solar projects, including 50 MW at Mahanadi Coalfields and 24 MW at Central Coalfields. Rooftop installations added a further 12 MW. CIL also established joint ventures with NTPC and NLC India to develop 2,000 MW of solar capacity and created a special purpose vehicle to manage project execution. Nevertheless, work orders were issued for only 727 MW of projects, with commissioning timelines extending to 2027–28, reflecting significant implementation delays.
The Ministry of New and Renewable Energy noted plans to add 158 MW more by 2025–26, alongside exploratory floating solar initiatives at abandoned mines. However, the CAG highlighted limited reporting on actual progress, raising questions about accountability. CIL cited post-pandemic supply chain disruptions, regulatory hurdles, and engineering challenges in active mining areas as key reasons for slow project execution. Volatile module prices, high initial costs, and limited grid access further complicate expansion.Other public sector partners face similar constraints. Bharat Heavy Electricals Limited (BHEL) struggles with outdated solar manufacturing lines, with minimal utilisation of 85 MW of solar cells and 200 MW of modules. The CAG recommended modernising facilities and analysing market opportunities before committing to further investment, illustrating wider systemic issues in India’s renewable rollout.
Industry experts argue that accelerating renewable energy within coal operations is crucial not only for meeting Net Zero targets but also for maximising land use and energy security. Addressing financial, technical, and regulatory bottlenecks will be key for Coal India to meaningfully contribute to India’s low-carbon transition and ensure public sector utilities support the country’s sustainable energy ambitions.
