Coal India Ltd. has secured a 600 MW solar power project in Uttar Pradesh through a Letter of Award from Bundelkhand Saur Urja Ltd. The project, estimated to cost ₹2,831.11 crore, comprises two 300 MW units and will supply power at a tariff of ₹2.73 per kWh. According to the company's exchange filing, the project is expected to be completed within 18 months of signing the power purchase agreement (PPA). The project will be constructed in Jalaun Solar Park in Uttar Pradesh. In a regulatory filing, Coal India stated that the key terms of the contract require submission of necessary documents as per the LoA, followed by signing of the Power Purchase Agreement (PPA), Implementation Support Agreement (ISA), and Land Rights Usage Agreement (LRUA). The company also needs to pay the upfront solar park development charges prior to executing the ISA with Coal India Limited. Coal India's stock advanced 1.01% to ₹439.15 following the announcement of the project win.
Coal India has signed a joint venture agreement with Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd. (UPRVUNL) to develop renewable energy projects in Uttar Pradesh, marking another step in the state-run miner's clean energy diversification strategy. The joint venture will focus on setting up ground-mounted solar, floating solar, pumped storage, wind and other renewable energy projects in the state, along with undertaking the sale of power and related business activities. The joint venture company will be incorporated as a private limited company with an initial paid-up capital of ₹10 lakh and an authorised share capital of ₹10 crore, with its registered office located in Lucknow, Uttar Pradesh. Coal India will hold a 51% stake in the joint venture, while UPRVUNL will own the remaining 49%. The board of the joint venture will comprise five directors, with Coal India nominating three directors, including the chairperson, and UPRVUNL appointing the remaining two directors. The agreement also provides pre-emptive rights to both partners for any future share issuances to maintain their respective shareholdings, with shares remaining locked in for five years subject to joint venture agreement terms.
Coal India's June coal supplies demonstrated robust growth, rising 7.5% year-on-year to 65.8 million tonnes compared with 61.2 million tonnes in the corresponding month last year. The company's stock remained stable, trading in the ₹438.50-441.95 range on the NSE following the supply update. This improvement in coal supplies comes despite production challenges reported in the first quarter of FY27, indicating the company's ability to optimize inventory and meet market demand effectively.
In a separate filing, the state-owned company reported that coal production dropped 7.5% to 169.6 million tonnes in the first quarter of FY27. The drop came despite robust demand from the power sector, which has seen unprecedented consumption levels this summer. Coal India, which accounts for over 80% of the country's coal output, produced 183.3 MT in the April-June period of the previous fiscal year. Coal production by the maharatna firm also dropped marginally by 0.6% to 57.4 MT in June from 57.8 MT in June last year. Coal arms of CIL that registered negative growth in June include Bharat Coking Coal Ltd (BCCL) and Mahanadi Coalfields Ltd (MCL), while subsidiaries South Eastern Coalfields (SECL), Eastern Coalfields (ECL), Central Coalfields (CCL) and Western Coalfields (WCL) registered positive growth.
Despite production challenges, Coal India's offtake showed positive momentum with coal sales rising 7.5% to 65.8 MT during June over 61.2 MT a year ago. The coal offtake in the April-June period also increased 3.5% to 197.7 MT over 191 MT in the year-ago period. This improvement in sales demonstrates the company's ability to optimize its inventory and meet market demand despite production constraints.
