Rs. 500 crore R&D push by 2030: Coal India targets AI, batteries and future technologies

CIL's Business Development portfolio is organised around five mutually reinforcing 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 portfolio already includes projects of national scale, including investments of approximately Rs 69,346 crore across four coal-to-chemicals initiatives, a 2×800 MW Chandrapura ultra-supercritical expansion, around 550 MW of commissioned solar capacity, grid-scale Battery Energy Storage System (BESS) projects, and opportunities in critical minerals and downstream materials.

Diversification with Purpose

CIL's nationwide footprint, mining and project-development expertise, government relationships, land and coal resources, procurement systems, balance sheet and partnership capabilities provide a strong foundation for diversification.

The company's guiding principle is “diversification with purpose”, with a focus on energy and mineral security, import substitution, indigenous technology, low-carbon growth, efficient utilisation of public assets and resilient domestic manufacturing, while maintaining commercial sustainability and risk-adjusted returns.

Coal Gasification and Coal-to-Chemicals

Coal gasification converts coal into synthesis gas, or syngas, which can be used to produce synthetic natural gas (SNG), ammonia, urea, ammonium nitrate, methanol and other chemicals.

The technology could help unlock greater chemical value from coal while supporting import substitution.

CIL's four major coal-to-chemicals initiatives include:

Talcher Fertilizers Ltd. — capacity of 1.27 MMTPA of urea, with an estimated project cost of Rs 19,062.22 crore.

Bharat Coal Gasification & Chemicals Ltd. — capacity of 0.66 MMTPA of ammonium nitrate, with an estimated project cost of Rs 25,015.89 crore.

Coal Gas India Ltd. — capacity of 633.6 million Nm³ per year of SNG, with an estimated project cost of Rs 13,052.81 crore.

CIL-BPCL Chandrapur coal-to-SNG initiative — capacity of 633.6 million Nm³ per year, with an estimated project cost of Rs 12,214.86 crore.

Technology priorities for these projects include adapting processes to high-ash Indian coal, process optimisation, localisation of critical equipment, advanced process control, digital twins, predictive maintenance, and improved water, ash and emissions management.

CIL plans to replicate projects only after operating data and commercial performance have been validated.

Underground Coal Gasification

Underground Coal Gasification (UCG) offers a potential route to convert deep-seated or otherwise unmineable coal into syngas.

As the technology has not yet been commercially proven globally, CIL is pursuing a phased pilot project at the Kasta West Block of Eastern Coalfields Limited (ECL).

Phase I was completed on May 31, 2025, while Phase II commenced on June 20, 2025. The second phase includes detailed engineering, directional drilling, injection and production wells, and ignition and control systems, with completion scheduled for 2026.

Thermal Power and Renewable Energy

CIL and the Damodar Valley Corporation (DVC) are implementing a 2×800 MW ultra-supercritical brownfield expansion at Chandrapura, Jharkhand, through a proposed 50:50 joint venture. DVC will facilitate the sale of power.

The project's future focus areas include high-efficiency generation, predictive maintenance, flexible plant operation, emission controls, water recycling and scientific utilisation of ash.

CIL has commissioned approximately 550 MW of solar capacity, while additional rooftop, ground-mounted, captive, interstate and market-linked projects are under development.

The company is pursuing two models: captive solar projects aimed at reducing power costs and carbon emissions, and utility-scale projects for commercial renewable-power generation.

Solar projects will be selected through lifecycle and risk-based assessments covering resource quality, transmission, land availability, storage, curtailment, offtake and delivered cost. Digital monitoring and hybrid storage solutions will also be used to support performance and operational flexibility.

CIL is also developing a 20 MW AC grid-connected floating solar project at Chilwa Taal in Gorakhpur.

Floating solar can provide a land-efficient option for suitable water bodies, although site-specific assessments will be required to address risks related to water levels, bathymetry, wind and waves, anchoring, corrosion, maintenance, safety and ecology.

Battery Energy Storage Systems

Battery Energy Storage Systems (BESS) can support renewable-energy integration, peak-demand management, grid flexibility and improved utilisation of transmission infrastructure.

CIL's initiatives include the TGGENCO Choutuppal project in Telangana, with a capacity of 187.5 MW/750 MWh and a four-hour duration. The project has been awarded to CIL, while EPC selection and long-term operation and maintenance arrangements are in progress.

CIL is also developing an Odisha BESS portfolio of 80 MW/320 MWh across four locations, with a four-hour duration. Capacity has been secured through the Solar Energy Corporation of India (SECI), and the EPC tender has been issued.

The commercial viability of BESS projects will depend on high availability, effective state-of-charge management, compliance with dispatch requirements and advance planning for augmentation.

Critical Minerals and Graphite Value Chain

Critical minerals are essential for batteries, electric vehicles, renewable-energy systems, electronics, advanced manufacturing, aerospace and defence.

CIL's domestic opportunities include graphite assets in Madhya Pradesh and Chhattisgarh, as well as rare earth element (REE) and rare-metal opportunities in Andhra Pradesh and Maharashtra.

The company's focus areas include resource definition, geometallurgy, beneficiation, recovery, product specification, waste management and market linkages.

These efforts are being supported through collaborations with Indian Rare Earths Limited (IREL), the Non-Ferrous Technology Development Centre (NFTDC), Curtin University, Hindustan Copper and state entities. Overseas opportunities will be evaluated through stage-gated technical and financial due diligence.

CIL also aims to establish an integrated graphite value chain covering mining, beneficiation, purification, spheronisation and coating, and production of anode materials.

In collaboration with NFTDC, a demonstration plant for coated spherical purified graphite (CSPG) with a purity of at least 99.95% has been proposed as a qualification platform. Commercial-scale expansion will follow consistent product quality, process performance and customer qualification.

Digital and Institutional Architecture

CIL plans to establish a common digital architecture spanning mining, process industries, power, renewable energy, grid services and advanced materials.

Key elements will include a secure enterprise data room, standard project financial models, GIS-based opportunity mapping, portfolio dashboards tracking project stage, approvals, investment, schedules, risks and returns, as well as digital engineering and asset-information requirements from the tender stage.

A common stage-gate model will cover opportunity screening, concept validation, feasibility, contracting, demonstration and commercial operation.

CIL will use joint ventures and strategic partnerships to access specialised technologies and markets, with emphasis on technology transfer, localisation, measurable deliverables and time-bound milestones.

Risk Management and Key Performance Indicators

CIL will adopt a proactive, stage-gated approach to managing technology and resource risks, market and financial risks, execution and cost risks, environmental, social and governance (ESG) and supply-chain risks, cyber and operational risks, and capability-related risks.

Risk responses will include pilot validation and independent reviews, customer qualification and offtake arrangements, robust detailed project reports and contingencies, lifecycle assessments and localisation, operational technology security and incident response, and targeted training and knowledge transfer.

Key performance indicators will cover project delivery, operational availability and quality, renewable-energy capacity in MW and storage capacity in MWh, mineral-resource advancement and downstream qualification, import substitution and indigenous technology, risk-adjusted returns and cash generation, and ESG outcomes relating to emissions, water, waste, restoration, safety and community impact.

The Business Development Division will serve as the enterprise integrator for technology-led diversification. Its responsibilities include identifying opportunities, structuring partnerships, validating technologies, establishing commercial models, securing approvals and moving projects into disciplined execution.

Immediate priorities include preparing a unified diversification and technology roadmap with accountable sponsors, standard technical, financial and ESG evaluation templates, and demonstration projects with predefined success criteria and independent validation.

CIL's R&D and Innovation Push

CIL's R&D framework has evolved from the Standing Committee on Science and Technology established in 1975, to the R&D Board constituted in 1994 and the Apex Committee established in 2003.

The framework has now progressed to the independent R&D Policy and Guidelines of 2026, which prioritise projects at Technology Readiness Level (TRL) 4 and above.

The thrust areas include mine planning, productivity, safety and exploration; artificial intelligence, machine learning and Internet of Things-based smart mining; environment and sustainability; waste-to-wealth; technology innovation and indigenisation; alternative uses of coal; renewable energy; and clean coal, beneficiation and mineral processing.

R&D governance provides for approvals through the CIL Board, R&D Board, Apex Committee and subsidiary-level R&D committees, depending on project value.

NaCCER functions as the independent nodal agency and central hub, supported by a hub-and-spoke network linking CIL Centres of Excellence, IITs and NITs, CSIR laboratories, research institutions, subsidiaries, incubation centres, start-ups and industry partners.

Major Centres of Excellence

Major CIL-funded Centres of Excellence include:

CIL Centre of Sustainable Energy at IIT Madras, supported with Rs 87.90 crore, focusing on sustainable materials, mine repurposing and energy transition.
CLEANZ at IIT Hyderabad, supported with Rs 98 crore, focusing on clean coal technology and low-grade Indian coal.
CIL Centre for Innovation in Mining at IIT (ISM) Dhanbad, supported with Rs 67.45 crore, focusing on Mining 4.0, IoT, smart mines, immersive technologies and 5G.
CII Centre at IIT (ISM) Dhanbad, supported with Rs 10 crore, focusing on innovation, incubation, prototyping, virtual reality, simulation and automation.

R&D Investment and Achievements

CIL's R&D portfolio comprises 20 individual projects with an approved outlay of Rs 231 crore.

High-impact initiatives include UCG at Kasta West, 5G captive networks for opencast and underground mines, bifacial perovskite solar cells, and artificial intelligence and geophysical exploration for critical minerals.

R&D expenditure stood at Rs 61.31 crore in FY 2023-24, Rs 245.38 crore in FY 2024-25 and Rs 183.88 crore in FY 2025-26.

Planned expenditure is Rs 225 crore for FY 2026-27, Rs 350 crore for FY 2027-28, Rs 400 crore for FY 2028-29 and Rs 500 crore for FY 2029-30.

Achievements during FY 2026-27 include the filing of five patents, with two additional patents under process; the grant of one patent for bifacial perovskite solar cells; technology transfer for the commercialisation of Velocity of Detonation measurement equipment; and discussions to establish new CIL Centres of Excellence with IIIT Roorkee and IIT Kharagpur.

Going forward, CIL aims to strengthen NaCCER, expand its hub-and-spoke R&D ecosystem, accelerate the transition from research to commercial deployment, and focus on indigenous and future-ready technologies, including coal gasification, advanced materials and battery technologies.

The broader strategy reflects CIL's effort to evolve from a conventional coal-mining enterprise into a diversified energy, minerals and technology company while supporting India's energy security, mineral security, technological self-reliance and low-carbon growth.