The country’s coal output increased by 6.48 percent to 384.08 million tonnes (MT) in the first five months of the current fiscal year. From April to August of FY24, output totaled 360.71 MT. CIL production, which accounts for more than 80% of domestic coal output, increased to 290.39 MT between April and August FY25, a 3.17 percent increase year on year, according to a statement from the coal ministry.
On Thursday, the Ministry of Coal issued an allocation order for three coal mines namely Machhakata (Revised), Kudanali Lubri, and Sakhigopal-B Kakurhi to Indian companies. In these three coal mines, one is a fully explored coal mine and two are partially explored coal mines.
Furthermore, the combined Peak Rated Capacity (PRC) of the three coal mines for which Vesting Orders have been granted is 30.00 MTPA, with 2,194.10 MT of geological reserves. These mines are estimated to provide an annual revenue of Rs. 2,991.20 crores based on PRC, with a capital investment of Rs. 4,500 crores. It will employ around 40,560 people, both directly and indirectly.
Moreover, including three coal mines for which orders were issued yesterday, vesting/ allocation orders have been issued for a total of 95 coal mines to date with a cumulative PRC of 202.50 MTPA. This will result in generating Annual Revenue of Rs. 29,516.84 crores calculated based on the PRC of the mines and will generate employment for 2,73,773 people both directly and indirectly.
Here are the stocks that will benefit from coal mine allocation by the Ministry of Coal;
NLC India Limited is an India-based company that is engaged in the business of mining lignite, coal, and generation of power by using lignite as well as renewable energy sources and consultancy. The Company’s segments include Mining and Power generation.
With a market capitalization of Rs 37,737.32 crore, the shares were trading at Rs 272.00 per share, increased around 3 percent in today’s morning trading session from the previous closing price.
According to the company filing, NLCIL received the vesting order for its Machhakata Coal Block, its largest mining project, from the Ministry of Coal. With reserves of 1.4 BT and a capacity of 30 MTPA, this project is a key milestone in NLCIL’s Corporate Plan 2030, marking its development start.
The company’s revenue stood at Rs 3,376 crore in Q1FY25, during the same time frame, net profit stood at Rs 567 crore.
Gujarat Mineral Development Corporation Limited mining and mineral processing company engaged in lignite exploration and supply in Gujarat. It operates through two segments: Mining and Power. Its minerals and mines projects include Lignite, Bauxite, Fluorspar, Manganese, Silica Sand, Limestone, Bentonite, and Ball Clay.
With a market capitalization of Rs 11,753.28 crore, the shares were trading at Rs 369.60 per share, increased around 1.51 percent in today’s morning trading session from the previous closing price.
The company’s revenue stood at Rs 818 crore in Q1FY25, during the same time frame, net profit stood at Rs 184 crore.
Written by:- Abhishek Singh
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