CAG Flags Major Delays in Coal India’s 3,000 MW Solar Project Rollout

The Comptroller and Auditor General of India (CAG) has strongly criticised Coal India Ltd (CIL) - the largest state-owned coal producer - for its slow pace in developing the government-mandated 3,000 MW solar power capacity. According to the CAG audit, as of December 31, 2024, Coal India and its subsidiaries had installed just 122.492 MW of solar capacity, which is only about 4.08 per cent of the target set by the government in 2017.

The audit report highlighted that work orders have been issued for only 692.50 MW of ground-mounted solar projects and 34.56 MW of rooftop projects up to December 2024, with expected completion now pushed to 2027–28, far beyond the original deadline.

The CAG has urged Coal India to fast-track execution of its solar projects to align with the company’s Net Zero energy commitments and broader national renewable energy goals. In pursuit of its solar plans, Coal India had also established joint ventures with NTPC Ltd and NLC India Ltd, and created its own special purpose vehicle - CIL Navikarniya Urja Ltd - to expedite solar project implementation.

Overall, the audit underscores the significant shortfall in achieving solar capacity targets by the deadline, raising concerns about Coal India’s ability to contribute effectively to India’s clean energy transition.

Coal India's 122 MW of installed solar against a 3,000 MW target (4 percent completion nine years into the programme) represents a substantial delivery gap for a company positioned as central to India's coal-to-clean transition credibility. Extending completion to 2027-28 pushes delivery well past the original 2020 deadline and raises questions about internal capability and priority alignment.

The parallel joint ventures (NTPC, NLC India) and dedicated SPV (CIL Navikarniya Urja) suggest institutional recognition of the delivery challenge, but execution capacity has clearly not scaled to match structural intent. For PSUs positioning credibly on net-zero commitments, gaps between announced targets and actual delivery undermine broader ESG-narrative credibility.

For PSUs preparing net-zero commitments, financial institutions evaluating PSU sustainability performance, and their advisors, Cognitud's ESG strategy and transformation, impact assessment and responsible investment teams help clients build execution-realistic transition roadmaps, structure delivery-tracking mechanisms aligned with public commitments, and prepare disclosures aligned with BRSR, ISSB and TCFD expectations that give investors and regulators visibility into transition delivery versus intent.