Coal India stock closes higher on subsidiary's plan to start two new mines this fiscal

Shares of Coal India closed higher today as Central Coalfields Ltd (CCL), a subsidiary of Coal India, plans to open two new coal mines in the financial year 2025-26, aiming to boost its production capacity by 10-12 million tonnes per annum.

Coal India stock gained 1 per cent to close at Rs 392.65 against the previous close of Rs 388.85 on BSE.

On the other hand, Sensex fell 511 pts to 81,896 and Nifty closed 140 points lower at 24,971 after the US carried out attacks on three nuclear sites in Iran. The share has fallen 18 per cent in one year but risen 72 per cent in two years. The market cap of the firm rose to Rs 2.41 lakh crore on BSE.

Total of 1.32 lakh shares of the firm changed hands amounting to a turnover of Rs 5.26 crore on BSE today.

CCL's Chairman and Managing Director, Nilendu Kumar Singh, "We have planned to open two new mines this year." This move is part of CCL's strategy to exceed 110 million tonnes of production in the current financial year and reach 150 million tonnes by 2030. The Kotre Basantpur block, a coking coal mine with a peak rated capacity of 5 million tonnes, is expected to commence production by October, while the Chandragupt open cast project, a non-coking coal mine with a capacity of 15 million tonnes per annum, aims to begin operations by March 2026."

In the previous fiscal year, CCL achieved its highest-ever production level, extracting 87.5 million tonnes of coal. This achievement underscores the company's need for strategic expansion to meet its ambitious targets. Preparations are being initiated to ensure that CCL can manage the expected increase in output, aligning with the national demand for coal. The development of these mines is crucial for sustaining CCL's growth trajectory and supporting Coal India's overall production goals.

CCL's initiative to expand its mining operations reflects its commitment to meeting India's rising energy demands. As coal continues to be a key component of the country's energy mix, the addition of these new mines is expected to support industrial and economic activities. This expansion will play a significant role in maintaining a steady supply of coal, essential for powering India's economy and supporting its development initiatives.