Rs 16,500 Crore Project: President of India-Backed Coal Mining Company Signs MoU with Damodar Valley Corporation
The stock is up by 18 per cent from its 52-week low of Rs 349.2 per share and has given multibagger returns of 200 per cent in 3 years.
Widening further its business diversification portfolio into thermal power generation, Coal India Limited (CIL), the country’s frontline coal producer, formally joined hands with Damodar Valley Corporation (DVC) to set up a coal-fired 2×800 MW Ultra Supercritical Power Plants in Jharkhand.
DVC is the power generator that operates in the states of West Bengal and Jharkhand. This would be a Brownfield project - an expansion of the existing Chandrapura Thermal Power Station (CTPS) of 2 X 250 MW capacity. A non-binding Memorandum of Understanding (MoU) was signed between the two government-owned energy entities on 21 April 2025 in Kolkata.
The total investment would be to the tune of Rs 16,500 crore. The joint venture company would be on a 50 per cent equity sharing basis. Coal for the proposed power plants would be sourced from coalfields in the proximity of CIL’s subsidiary companies, Bharat Coking Coal Limited and Central Coalfields Limited.
In the presence of Mr. P M Prasad, Chairman, CIL and Mr. S Suresh Kumar, (IAS) Chairman, DVC, the pact was inked by Mr. Debasish Nanda, Director (Business Development) CIL and Mr. Swapnendu Kumar Panda, Member (Technical) DVC, on behalf of the respective companies.
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About the Company
Coal India Ltd, a giant public sector company under India's Ministry of Coal, is the world's largest coal producer. Established in 1973 through the nationalisation of the coal industry, Coal India Ltd mines and produces coal, operating washeries to process it. Their primary customers are power and steel plants, but they also supply coal to cement factories, fertiliser companies, and brick kilns.
The company has a market cap of over Rs 2.4 lakh crore and has been maintaining a healthy dividend payout of 50 per cent. The shares of the company have a PE of 6.6x, an ROE of 52 per cent and an ROCE of 64 per cent. The stock is up by 18 per cent from its 52-week low of Rs 349.2 per share and has given multibagger returns of 200 per cent in 3 years. Investors should keep an eye on this Large-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.