From Coal to Code: How India's Top PSUs Are Embracing AI

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Artificial Intelligence (AI) is rapidly transforming India’s Public Sector Undertakings (PSUs).

It is enabling them to improve operational efficiency, enhance safety, reduce costs, and accelerate digital transformation.

From energy and mining to defence and steel, here’s a look at how leading PSUs are integrating AI into their core operations to build smarter, more resilient systems.

Oil and Natural Gas Corporation

Oil and Natural Gas Corporation (ONGC), India’s largest oil and gas producer, has embarked on a significant AI-led digital transformation journey.

A key milestone in this journey is the launch of Pragya-AIX, ONGC’s Artificial Intelligence and Innovation Exchange. The platform integrates over 26 AI-powered applications into a unified ecosystem across the company’s nationwide upstream operations.

Instead of isolated AI pilots, Pragya-AIX enables real-time decision-making, streamlines workflows, strengthens cybersecurity, and enhances collaboration across operational teams.

The company also recently partnered with Noida-based CIPL in a Rs. 125 crore, three-year agreement to modernise its digital infrastructure using AI.

Coal India

Coal India Limited (CIL) is leveraging AI to improve mine safety and operational efficiency.

In a recent collaboration with ISRO’s National Remote Sensing Centre (NRSC), the company is developing an AI-powered satellite dashboard to monitor underground coal fires, particularly in vulnerable regions such as Jharia and Dhanbad, and predict their spread.

CIL has also established Integrated Command and Control Centres (ICCCs) equipped with over 500 AI-enabled surveillance cameras for real-time monitoring of underground and open-cast mines.

Additionally, its Digi Coal platform incorporates 17 AI use cases, helping automate routine processes and improve productivity.

NTPC

India’s largest power producer, NTPC, is using AI to optimise plant operations and minimise equipment failures.

AI platforms analyse sensor data from boilers and turbines to predict faults before they result in costly damages.

The company’s Advanced Computing Center (ACC) has developed NePPS (NETRA e-Power Plant Solutions), an AI-based operator advisory system that provides real-time operational insights, enabling better decision-making and improving power plant efficiency.

Bharat Electronics Limited

Bharat Electronics Limited (BEL) is integrating AI into India’s defence ecosystem through dedicated investments in research and innovation.

The company recently established an AI Centre of Excellence in Pune, equipped with advanced supercomputing infrastructure for AI model development and rapid prototyping.

BEL has also introduced its own AI Policy to guide AI adoption across defence technologies.

Among its notable innovations is the AI-Enabled Voice Analysis Software (AIVAS), which supports speaker identification, dialect recognition, and multilingual translation for intelligence and security agencies.

Steel Authority of India

Steel Authority of India Limited (SAIL) is adopting AI to improve operational efficiency and to support sustainability goals.

At its Bokaro Steel Plant, an AI-assisted stoichiometric optimisation system has reduced coal and flux consumption, generating annual savings of Rs. 3.23 crore while cutting carbon emissions by approximately 1,500 tonnes.

To build an AI-ready workforce, SAIL has partnered with FutureSkills Prime to train employees in emerging digital technologies.

In 2025, the company also signed a strategic agreement with McKinsey & Company India LLP to accelerate enterprise-wide digital transformation through AI, cloud computing, and advanced analytics.

The adoption of AI is no longer limited to technology companies. India’s PSUs are actively integrating AI to modernise operations, improve safety, optimise resources, and enhance decision-making. As these organisations continue investing in digital capabilities, AI is emerging as a key driver of innovation, productivity, and long-term competitiveness across India’s public sector.