The largest producer of coal in the world, Coal India Limited (CIL) is making its most radical move toward clean energy. The state-owned giant has posted tenders on 3 gigawatts (GW) of solar projects and 2 GW of wind projects, a significant shift towards renewable energy sources instead of fossil fuels.
A Landmark Tender
The company recently released an EPC (Engineering, Procurement, Construction) tender where interested bidders could submit for solar PV projects across India, totaling 3 GW. The projects will be developed in large solar resource cities in various states, such as Andhra Pradesh, Tamil Nadu, Karnataka, Rajasthan, and Madhya Pradesh.
The scope of work consists of land procurement, module manufacturer, engineering, installation, commissioning, and long-term operating agreement. Regarding the modules, these modules will need to conform to the MNRE Approved List of Models and Manufacturers (ALMM), indicative of constructible quality.
Projects 200 MW up to the maximum 3 GW may be bid by the bidders at a minimum capacity utilization factor (CUF) of 25%. The bids should be received before September 16, 2025.
From Coal to Clean Energy
Coal India currently owns just 0.2 GW of solar installations which are mainly small rooftop and ground-mounted installations. The company is aiming to achieve 3 GW under this new program by 2028, 9.5 GW by 2030.
It is a timely move. The demand has been slow and the production has declined in Coal India which supplies about 75 percent of the coal used in India. Indeed, coal production dropped by 3.5 percent during the initial five months of FY 2025-26, highlighting the need to diversify the portfolio.
Why This Matters
This tender signals a strategic transformation for Coal India:
- Diversification Beyond Coal: By investing heavily in solar and wind, the company is reducing its dependence on a resource facing declining demand worldwide.
- Opportunity to Developers: The massive size of EPC contracts creates new opportunities to Indian and global renewable energy companies to join one of the biggest rollouts of solar in the country.
India is also targeting 500 GW of non-fossil energy capacity by 2030 in line with a commitment to National Goals. Coal India’s renewable plans directly support this ambition.
The Bigger Picture
The pivot of Coal India is a mirror of the general change in the energy market of India. The country is speeding up its clean energy transition with record-breaking additions to its renewable capacity in 2025 and with vigorous adoption of rooftop solar.
In the case of CIL, it will be a challenge of scale. Should it be successful, the company would become more than a reminder of India’s reliance on coal and become a central figure in its renewable energy future.
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