Coal India has secured its board’s approval for equity infusion of Rs 3,132.96 crore in the proposed joint venture (JV) of the company with Damodar Valley Corporation (DVC), as part of the total indicative project cost of Rs 20,886.40 crore, with a debt-equity ratio of 70:30. The JV will focus on thermal power projects and renewable energy projects with/without storage to meet the growing energy demand and ensuring energy security for the valley area of DVC and other parts of India. Both companies will hold 50%-50% stake in the JV, with 30% funded through equity infusion and 70% through debt.
Additionally, the board has also approved the investment of Rs 3,189.54 crore towards the company’s equity contribution in promoter’s equity stake in its subsidiary -- Bharat Coal Gasification and Chemicals (BCGCL). The investment is aimed at funding Coal to Ammonium Nitrate Project, having capacity of 0.66 MMTPA of Ammonium Nitrate. The project will also help to meet the explosives requirement of the company and reduce import dependence. The project implementation period is 48 months. The company hold 51% stake in BCGCL, while balance 49% stake held by BHEL.
Coal India is the world’s largest coal mining company. It also produces non-coking coal and coking coal of various grades for diverse applications.
| Company Name | CMP |
|---|---|
| Coal India | 438.70 |
| NMDC | 89.78 |
| GMDC | 733.40 |
| Sandur Manganese | 218.35 |
| MOIL | 327.60 |
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