Coal India has announced the establishment of a subsidiary firm, Bharat Coal Gasification and Chemicals Ltd (BCGCL) to venture into the coal-to-chemicals business.
As per the regulatory filing, Coal India (CIL) holds a controlling 51 per cent stake in the newly formed entity, with the remaining 49 per cent owned by Bharat Heavy Electricals Ltd (BHEL).
On Tuesday, shares of Coal India concluded the day at Rs 486.90 price level, down by 1.53 per cent on the National Stock Exchange.
Earlier this year, Coal India entered into a joint venture agreement with BHEL to undertake a coal-to-chemicals business.
Clearance of NITI Aayog and the Department of Investment and Public Asset Management (DIPAM) has been received for the formation of the joint venture company between BHEL and CIL, the filing said.
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"Bharat Coal Gasification & Chemicals Ltd has been incorporated...for coal to chemicals business to produce ammonia and nitric acid as intermediate products and ammonium nitrate as end product," the filing said.
Meanwhile, CIL had signed a Memorandum of Understanding (MoU) with GAIL for setting up of coal-to-synthetic natural gas project at the Sonepur Bazari area of Eastern Coalfields Limited (ECL) in Burdwan district at an estimated project cost of Rs 13,052 crore.
Coal India accounts for over 80 per cent of domestic coal output. On an annual basis, the shares of the state-owned firm have delivered massive returns of almost 98 per cent on NSE.
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In the fourth quarter, Coal India reported a 26 per cent rise in net profit, reaching Rs 8,682 crore, up from Rs 6,875.07 crore recorded in the corresponding quarter of the previous fiscal.
The state-owned company announced a final dividend of Rs 5 per share for FY24.
(With Inputs From PTI)
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