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Coal India Limited (CIL) has decided to dissolve its subsidiary, Coal India Limited (CIL) Solar PV Limited, from the Register of Companies. The move marks one of the most comprehensively documented setbacks in India’s public-sector renewable energy push, backed by findings from the Comptroller and Auditor General of India (CAG).
In 2015, CIL committed to developing 1,000 MW of renewable energy capacity by March 2019, with the aim of reducing annual energy charges by ₹55.50 crore. The government later expanded the mandate in 2017, directing the company to develop 3,000 MW of solar capacity by 2024 and transition into a net-zero energy company.
However, by December 2024, CIL had installed only 122 MW of solar capacity — just 4.08% of the target — while most projects have now been delayed until 2027–28.
For a company with more than 200,000 employees, extensive land holdings across 83 mining areas, and a large captive power consumption base, the shortfall reflects a major failure in executing its renewable energy ambitions.
While CIL recently attempted to strengthen its renewable energy portfolio by commissioning a 100 MW solar project after receiving certification from the Gujarat Energy Development Agency, its broader solar initiatives through the subsidiary have suffered a significant setback.
The CAG, in an earlier report, revealed that the installed solar capacity across CIL and its seven subsidiaries stood at only 4.08% of the envisaged 3,000 MW target. The audit body criticised CIL for failing to fast-track project execution despite repeated commitments made to the Government of India. It also urged the company to expedite corrective actions related to compliance with guidelines aimed at mitigating air pollution.
CIL’s decision to dissolve the subsidiary did not emerge suddenly. Historical audit findings and repeated implementation delays had already pointed towards the company’s inability to achieve its renewable energy goals.
A Performance Audit Report highlighted that CIL’s memorandum of understanding (MoU) with the Solar Energy Corporation of India for the development of solar projects failed to translate into meaningful progress. According to the report, the company did not initiate the necessary steps required to achieve the 1,000 MW target within the original timeline.
The delays persisted despite multiple initiatives undertaken by CIL to meet the expanded 3 GW target. The company established joint ventures with NTPC Limited in April 2010 and NLC India Limited in November 2020 for the development of 1 GW solar projects each, in addition to its partnership with SECI. CIL also formed a Special Purpose Vehicle (SPV), CIL Navikarniya Urja Limited, in April 2021 to accelerate solar project implementation.
The company later executed an agreement with NLC India Limited to establish a joint venture for solar power development. However, subsequent Action Taken Notes (ATNs) failed to provide meaningful updates regarding the progress of these initiatives.
The CAG report further noted in its first ATN, submitted in November 2021, that only 4.84 MW of solar capacity had been installed, including 2.83 MW of rooftop solar projects and 2.01 MW of ground-mounted projects. CIL and its subsidiaries had also initiated steps to install an aggregate rooftop solar capacity of 10 MW during FY 2020-21.
However, the audit later observed that, as of December 2024, installed solar capacity across CIL and its subsidiaries had reached only 122.492 MW. Work orders had been issued for 692.50 MW of ground-mounted projects and 34.56 MW of rooftop solar projects, with commissioning timelines extended to 2027–28.
In its February 2023 response, the management attributed the slow progress to supply chain disruptions in photovoltaic (PV) solar modules following the Covid-19 pandemic. It also noted that the Ministry of New and Renewable Energy had granted blanket extensions for solar projects until March 2024 during December 2022 and January 2023.
According to the company, around 1,851.733 MW of solar capacity was planned across CIL-owned land, solar parks, and multiple states across India. The remaining 1,148.267 MW was proposed through additional land allocations and participation in pan-India renewable energy projects.
The Ministry stated in July 2023 that CIL was also planning an additional 1,158 MW of solar capacity by 2025–26. It further proposed exploring floating solar projects at abandoned mines and stabilised overburden (OB) dumps across various subsidiaries. However, no detailed update on implementation progress was subsequently provided.
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