Coal India solar push: ₹961 cr capex, 2026 tenders

A renewed focus on solar and storage

India’s push to add renewable capacity is drawing more activity from state-run firms across solar generation, floating solar and battery storage. Recent updates show multiple projects being advanced in Uttar Pradesh and Gujarat, alongside tendering activity and procurement plans that signal a broader effort to scale clean power.

GAIL (India) Limited has approved development of a 600 MW solar power project with battery storage in Uttar Pradesh. Separately, Coal India Limited (CIL) has moved ahead with new tendering, while also reporting a sharp rise in solar capital expenditure in FY26 so far.

GAIL clears a 600 MW solar project with battery storage

GAIL (India) Limited said it has approved development of a 600 MW solar power project with battery storage in Uttar Pradesh. The project is described as being in the northern state and includes battery storage as part of the plan, highlighting how grid support is increasingly being coupled with renewable generation.

The announcement adds to the set of large solar projects being discussed in Uttar Pradesh, where multiple public sector entities and joint ventures have indicated plans or bids for utility-scale capacity.

Coal India opens bids for 20 MW floating solar in Gorakhpur

Coal India is accepting bids to develop a 20 MW (AC) floating solar photovoltaic facility at Chilwa Taal in Gorakhpur district, Uttar Pradesh, according to details published by pv magazine India. The tender is for a grid-connected project and includes five years of operation and maintenance after commissioning.

The scope covers design, engineering, procurement, construction, installation, testing, and commissioning. It also specifies a minimum 40% (DC) overload capacity. The total contract period is 72 months, split into 12 months for construction and commissioning, followed by 60 months of ongoing operations and maintenance.

Coal India said it plans to leverage floating solar technology to optimise use of water bodies, reduce land requirements, and expand its renewable energy portfolio. Bidding for the floating solar project closes on Jan. 14, 2026.

Coal India’s solar spending crosses full-year target early

Coal India’s solar capital expenditure reached ₹961 crore till January FY26. The company said this was 132% of its progressive target of ₹729 crore for the same period and had already exceeded its full-year goal of ₹957 crore.

The update indicates an acceleration in spending pace within the fiscal year, at a time when Coal India has also been participating in auctions to secure additional projects and build out its renewable portfolio.

Current renewable base and near-term buildout

Installed renewable capacity stood at 247 MW till December 2025 and is projected to rise to 675 MW by the fiscal year-end, driven by key Gujarat projects. The projects cited include a 100 MW plant at Patan and a 300 MW facility at Khavda.

These near-term additions matter because they provide a measurable bridge from a smaller installed base to a significantly higher year-end target. The same set of disclosures also points to additional capacity under evaluation through subsidiaries and joint ventures.

Pipeline under evaluation: 2,000 MW across subsidiaries and JVs

Coal India is evaluating nearly 2,000 MW through subsidiaries and joint ventures. The figures cited include 875 MW in Rajasthan and 500 MW in Uttar Pradesh, alongside the 20 MW floating solar project in Gorakhpur.

In a separate development referenced in the provided material, Coal India’s board approved a ₹3,160 crore guarantee for a subsidiary’s 875 MW solar project. The disclosure underscores the scale of projects being pursued and the financial support mechanisms being used within group structures.

Uttar Pradesh projects: MoU, bids and new proposals

Coal India said it signed an MoU with UP Rajya Vidyut Utpadan Nigam Ltd (UPRVUNL) to set up a 500 MW solar power project in Uttar Pradesh. The company stated the MoU is non-binding and was executed on May 5, 2025 in Lucknow, with an intent to develop the 500 MW facility.

Separately, a statement attributed to “Sairam” mentioned notable solar initiatives including a 300 MW project in Khavda, Gujarat, and a joint venture in Uttar Pradesh with a capacity of 500 MW. The same statement added that a 600 MW solar project in Jalaun, Uttar Pradesh had been successfully bid for.

Taken together with the GAIL approval and Coal India’s floating solar tender in Gorakhpur, these updates show Uttar Pradesh emerging as a key state for large-scale solar additions and associated tendering activity.

Supply chain signals: Vikram Solar module order for Kutch

Vikram Solar secured a 378.75 MW n-TOPCon module order from Indian Oil NTPC Green Energy Pvt Ltd (INGEL), an IOCL-NTPC joint venture, for a 600 MW solar project in Kutch, Gujarat. Supplies are expected to commence in FY 2026.

The material also notes that modules will be deployed near Nakhatrana as part of a 600 MW solar project, with deliveries expected to begin in FY26. While procurement does not equate to commissioning, module orders are often an early indicator of execution timelines for utility-scale projects.

Storage policy backdrop: Maharashtra pushes BESS procurement

Beyond solar generation, storage is being positioned as a key enabler for grid reliability. The Maharashtra Electricity Regulatory Commission has approved procurement of 2,000 MW / 4,000 MWh Battery Energy Storage Systems for Maharashtra State Electricity Distribution Company Limited.

Separately, the Maharashtra Cabinet has approved the Maharashtra Renewable Energy and Energy Storage Policy 2025–2035. These steps provide a policy and regulatory backdrop for higher penetration of renewables, particularly as more intermittent generation is added.

Key facts at a glance

Market impact and why these updates matter

Coal India’s disclosures show a faster-than-targeted pace of solar capital deployment in FY26, with spending of ₹961 crore by January exceeding both a progressive target and the full-year goal stated for the year. At the same time, tendering for floating solar in Uttar Pradesh adds a project type that can reduce land dependence, which is often a constraint for large installations.

The set of announced and evaluated capacities also provides a clearer map of where future additions may concentrate, especially across Gujarat and Uttar Pradesh. On the grid side, the Maharashtra BESS approvals and storage policy signal that large-scale storage procurement is being built into state-level planning, which can support higher renewable integration.

Conclusion

Recent announcements show public sector entities advancing multiple renewable levers at once: utility-scale solar, floating solar, and battery storage-linked procurement. Coal India’s increased solar capex, its Gorakhpur floating solar tender with a Jan. 14, 2026 bid deadline, and GAIL’s 600 MW solar plus storage approval in Uttar Pradesh collectively underline the pace of activity in FY26 and the project pipeline for the next phase of execution.