After Bharat Coking Coal, Coal India to divest up to 25% in Mahanadi Coalfields

In line with the government’s commitment to unlock value of its assets, Coal India’s board has given an in principle approval to divest up to 25% of Mahanadi Coalfields Limited (MCL), its subsidiary that operates all of its mines in Odisha. Besides this, the Maharatna company has also approved the divestment of South Eastern Coalfields Limited (SECL), another of its subsidiaries. 

According to press releases given to the bourses, the board has cleared a divestment of 25% in  Mahanadi Coalfields Limited (MCL) while another 35% will be offlloaded from the South Eastern Coalfields Limited (SECL).

This will be the third divestment of Coal India Limited’s (CIL) subsidiaries, with Bharat Coking Coal Limited (BCCL) already listed on the bourses. 

Unlocking the Crowns: The Subsidiaries in Focus

Unlike BCCL, MCL and SECL represent a fairly larger chunk of its operations. MCL is Coal India’s single largest subsidiary by volume, producing almost 200 million tonnes and offering debt-free, consistent returns. SECL, headquartered in Chhattisgarh, is in second place, producing 176 million tonnes of coal across its mines in Chhattisgarh. 

The Capital Mandate: Funding Green Transitions and Infrastructure

Through this listing, Coal India aims to deploy the proceeds to invest in automated mechanised coal handling plants and dedicated rail siding corridors directly inside the mining blocks, saving logistics costs. Besides that, CIL aims to install 3,000 MW of solar power capacity and establish mega thermal plants to vertically integrate its revenue streams as it looks to meet decarbonization targets.