Coal India on Thursday announced that a uniform levy of Rs 300 per tonne will be imposed across all mines of its wholly owned subsidiary, Northern Coalfields Ltd (NCL), effective from May 1, 2025. In a regulatory filing, the company said that the CIL board has approved the “Singrauli Punarasthapan Charge of Rs 300 per tonne, over and above the notified price of coal shall be levied uniformly across all mines of NCL on and from 1st May’2025”.
NCL is the third largest subsidiary of Coal India with sales of around 138mt in FY24, contributing 18 per cent of CIL’s total sales volume. The decision, it added, is expected to generate additional revenue of around Rs 3877.50 crore.
ALSO READHow will UltraTech’s foray into cables & wires impact other players in the sector?
NCL operates mainly in Madhya Pradesh’s Singrauli and Uttar Pradesh’s Sonebhadra districts, and supplies coal to power and non-power sectors.
Analysing the move, an analysis report by Nuvama stated, “The cash inflow is likely to be widely used to fund the upcoming land acquisition and rehabilitation programme at one of the mining areas in Singrauli over the next few years. This levy would lead to a surge in CIL’s FY26E/27E EBITDA by 9%/10%.”
The brokerage firm said that the aforementioned development brings optimism that CIL’s other subsidiaries too can levy charges/take price hikes when costs increase (next wage revision due in June 2026).
“Only worrying sign for CIL is lack of volume growth (Apr-Jan’25 volume up 1.8 per cent YoY to 630mt), which would restrict overall earnings growth. We would turn positive on CIL on any signs of a sustained volume recovery,” Nuvama added.
Earlier in January, Coal India had released its fiscal third quarter earnings report with profit at Rs 8491.22 crore, down 17.49 per cent YoY. It had recorded revenue from operations at Rs 35,779.78 crore, posting a drop of 1.03 per cent on-year.
During the quarter in review, coal production stood at 202.02 MT, up 2 per cent YoY from 198.99 MT during the same period last year. Coal India said that the highest production was recorded by its subsidiary MCL at 60 MT, followed by SECL at 40.06 MT and NCL at 38.39 MT.
Shares of Coal India were up 0.73 per cent at 10:30 pm at a trading price of Rs 363.85.
» Read More
