The Comptroller and Auditor General of India (CAG) has criticized Coal India Ltd (CIL) for delays in meeting its solar power targets, having installed only 122.49 MW of the 3,000 MW goal by December 2024. The report highlights that CIL and its subsidiaries have underperformed since a mandate issued in 2017 for transitioning to Net Zero energy. As of December 2024, only 692.50 MW of ground-mounted and 34.56 MW of rooftop solar projects had work orders issued, with commissioning now expected by 2027-28. CIL has partnered with NTPC Ltd and NLC India Ltd for developing 1,000 MW solar capacity each, creating a dedicated vehicle, CIL Navikarniya Urja Ltd, to expedite project execution.
India’s Clean Energy Ambitions
The CAG emphasizes the need for improved execution and monitoring to align with national clean energy goals The Comptroller and Auditor General (CAG) of India has raised serious concerns over Coal India Limited’s slow progress in achieving its solar power targets, bringing renewed focus on the challenges faced by public sector enterprises in aligning with India’s clean energy ambitions. As the world’s largest coal-producing company, Coal India’s transition toward renewable energy is considered symbolic and strategically important for India’s broader climate commitments. However, the latest audit observations suggest that the pace of execution has lagged.
Significantly behind stated goals, raising questions about planning, implementation, and accountability within one of the country’s most influential energy entities According to the CAG report, Coal India announced ambitious renewable energy plans, including large-scale solar installations across its mining operations, offices, and land assets. These targets were framed as part of India’s commitment to reduce carbon intensity and increase non-fossil fuel capacity. Despite this, the audit found that actual solar capacity additions remained substantially below projections, even several years after targets were announced. This gap between policy intent and on-ground execution.
Coal India Subsidiaries
Structural inefficiencies that continue to plague renewable energy adoption in legacy fossil fuel institutions One of the core issues flagged by the auditor relates to delays in project planning and tendering processes. The report notes that Coal India and its subsidiaries often failed to prepare realistic timelines, leading to repeated deferments of solar installations. In several cases, feasibility studies were either delayed or inadequately conducted, resulting in stalled projects. These shortcomings are particularly significant given that Coal India operates across vast tracts of land that are well-suited for solar power generation, including reclaimed mining areas that could support utility-scale projects.
The audit also points to weak coordination between Coal India, its subsidiary companies, and implementing agencies, which contributed to slow execution. Solar projects were frequently impacted by approval bottlenecks, lack of clear responsibility allocation, and changes in project scope mid-way through implementation. Such governance challenges undermine the company’s ability to act as a credible participant in India’s renewable energy transition. This concern has also been echoed in previous discussions on public sector efficiency, as highlighted in our analysis on India’s renewable energy governance challenges.
Further Weakened Execution Certainty
Financial planning emerged as another area of concern in the CAG’s assessment. While Coal India possesses strong cash reserves, the audit observed that fund allocation for solar projects was inconsistent, and in some instances, sanctioned funds were either underutilized or (India) diverted due to administrative delays. The lack of a ring-fenced renewable energy budget further weakened execution certainty. This stands in contrast to the expectations placed on cash-rich public sector enterprises to lead by example in green investments, particularly when private sector players are aggressively scaling up solar capacity From a policy perspective, the CAG’s observations carry.
Wider implications for India’s energy transition narrative. Coal India is not merely a commercial entity; it is a strategic arm of the government’s energy framework. Its renewable energy performance directly influences perceptions about the seriousness of India’s decarbonization efforts. As discussed in our coverage of India’s solar capacity roadmap, achieving national targets requires coordinated action across ministries and state-owned enterprises, not just private developers The audit also underscores a disconnect between Coal India’s sustainability disclosures and actual outcomes. While annual reports and public statements emphasized commitments to green.
Global Energy Governance
Energy and environmental responsibility, the pace of solar deployment did not match these assertions. Such discrepancies risk eroding stakeholder confidence, particularly among investors, policymakers, and international observers tracking India’s climate progress. Transparency and measurable outcomes are increasingly becoming non-negotiable in global energy governance, as emphasized by institutions like the International Energy Agency Another notable aspect of the CAG report is its focus on missed opportunities for land monetization through solar projects. Coal India controls extensive non-operational and reclaimed land parcels that could host solar power plants with minimal ecological impact.
The audit found that these assets were not systematically mapped or prioritized for renewable development, resulting in lost potential for clean energy generation and additional revenue streams. This issue mirrors broader challenges in land-use optimization, which we have explored earlier in our feature on sustainable use of industrial land in India The implications of delayed solar adoption are not limited to environmental outcomes alone. Operationally, solar power could help Coal India reduce electricity procurement costs for its mining operations, many of which are energy-intensive. By failing to scale up captive solar generation, the company continues to rely.
Coal Ministry And Renewable Energy
On conventional power sources, exposing itself to price volatility and regulatory risks. In an era where energy security and cost optimization are closely linked to renewables, such delays represent missed strategic advantages The Ministry of Coal the Ministry of New and Renewable Energy both emphasized the role of public sector enterprises in accelerating clean energy deployment. The CAG’s findings suggest that stronger inter-ministerial oversight and clearer accountability mechanisms may be required to ensure that commitments translate into tangible outcomes. This could include stricter monitoring of renewable targets, performance-linked incentives for.
Subsidiaries, and greater reliance on specialized renewable energy implementing agencies In response to the audit observations, experts argue that Coal India needs a dedicated renewable energy roadmap with clear milestones, professional project management structures, and transparent reporting frameworks. Integrating solar deployment into core business planning, rather than treating it as an ancillary activity, will be crucial for long-term success. The company’s experience could also serve as a learning case for other fossil fuel-dominated public enterprises navigating similar transitions Ultimately, the CAG’s flagging of Coal India’s slow progress on solar targets serves.
As a timely reminder that India’s energy transition is as much about governance and execution as it is about ambition. While policy frameworks and national targets set the direction, their success depends heavily on how effectively institutions act on them. As India seeks to (India) balance energy security, economic growth, and climate responsibility, the performance of entities like Coal India will remain under close scrutiny by auditors, policymakers, and the public alike.
Q1. What did the CAG report say about Coal India’s solar targets?
The CAG reported that Coal India significantly lagged behind its planned solar capacity additions due to delays in planning, execution, and coordination.
Q2. Why is Coal India’s solar performance important?
As a major public sector enterprise, Coal India’s renewable progress is critical to India’s overall clean energy and decarbonization goals.
Q3. What were the main reasons for delays?
Key reasons included weak project planning, approval bottlenecks, underutilization of funds, and lack of clear accountability.
Q4. Did the report mention financial constraints?
No major financial constraints were noted; instead, inconsistent fund utilization and administrative delays were highlighted.
Q5. What can improve Coal India’s renewable performance?
A dedicated renewable roadmap, better governance, professional project management, and stronger oversight mechanisms could accelerate progress.
