CIL Floats EOI Seeking Buyers For Its Proposed 4.5 GW RE Power

Coal India Limited (CIL), the world’s largest coal producer and a ‘Maharatna’ enterprise under the Ministry of Coal, Government of India, has announced its ambitious foray into renewable energy with plans to develop 4.5 GW of capacity across India. The state-run mining giant, headquartered in Kolkata, is looking to transform its energy portfolio by tapping into solar and wind power.

Under the proposed renewable energy expansion, CIL aims to install between 2500–3000 MW of solar power and 1500–2000 MW of wind energy, collectively referred to as the 4.5 GW RE Project. The projects will be executed in a phased manner, with CIL overseeing key responsibilities such as land identification, project development, connectivity acquisition, and the issuance of EPC contracts.

Seeking Long-Term Buyers

The company has identified a clear performance target for these assets — a minimum of 11,500 Million Units (MUs) of electricity per year at the delivery point. Importantly, solar energy will contribute at least 60% of this total generation. The minimum Capacity Utilization Factor (CUF) is specified at 26% for solar and 35% for wind.

CIL is actively seeking interest from long-term power buyers — including utilities, industrial players, and DISCOMs — who are willing to enter 25-year Power Purchase Agreements (PPAs). Buyers are expected to propose tariffs in INR or USD and take delivery of power from the nearest ISTS/CTU substations.

The project outlines a “take-or-pay” structure, meaning power buyers must pay for contracted energy irrespective of actual off-take. Buyers will also be responsible for transmission and wheeling charges, open access levies, and other statutory surcharges unless specifically exempted under applicable laws.

CIL’s Shift Towards Green Energy

The supply of power from CIL’s renewable portfolio is expected to begin within 24 months from the signing of the PPA. CIL’s transition into renewables is significant, considering its foundational role in India’s coal ecosystem. The company operates across eight states, managing 84 mining areas and 313 active mines, including 131 underground, 168 opencast, and 14 mixed mines.

Its expansive structure includes twelve subsidiaries, such as Eastern Coalfields Limited (ECL), Bharat Coking Coal Limited (BCCL), and Central Coalfields Limited (CCL), among others. Additionally, CIL has five joint ventures including Hindustan Urvarak & Rasayan Ltd. (HURL) and CIL NTPC Urja Pvt. Ltd. (CNUPL).

This strategic push toward green energy indicates CIL’s evolving role as not just a coal provider but as a comprehensive energy enterprise aligning with India’s broader sustainability and energy security goals. As CIL opens the doors to renewable power purchasers, the industry will closely watch how one of the country’s most influential PSUs navigates this green transformation.