Coal India Approves Major Investments in Subsidiary and JV

Coal India Ltd's (

) board approved a ₹3,189.54 crore equity investment in its subsidiary Bharat Coal Gasification and Chemicals Ltd (BCGCL) on February 4, 2026. This funding supports a pre-implementation project to produce 0.66 million tonnes per annum (MTPA) of ammonium nitrate, targeting CIL's explosives needs and import reduction over a 48-month timeline. BCGCL, incorporated in May 2024 with CIL holding 51% and BHEL 49%, will issue shares at face value in this related-party transaction, requiring no further approvals. In parallel, the board gave in-principle nod for a ₹3,132.96 crore equity infusion into a 50:50 joint venture with Damodar Valley Corporation (DVC). Part of a ₹20,886.40 crore total outlay (70:30 debt-equity), the JV will develop thermal and renewable power projects with energy storage to bolster regional energy security. Disclaimer: This post is for informational purposes only and not a recommendation to buy or sell any securities. I, or my family, associates, or relatives, may have a financial interest in the securities mentioned.