Coal India's shares surged nearly 1 per cent on Thursday following the company's announcement of signing a Joint Venture Agreement (JVA) with BHEL. The agreement aims to venture into the Coal to Chemicals business, starting with the establishment of a 2000 TPD Ammonium Nitrate Plant using BHEL’s in-house developed Pressurized Fluidized Bed Gasification (PFBG) technology.
According to the agreement terms, Coal India Limited (CIL) will hold a majority equity share of 51 per cent, while BHEL will hold 49 per cent in the Joint Venture Company. The entity will be established as a 'Private Limited' Company with an initial paid-up share capital of Rs. 1,00,000.
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At 10:15, the shares of CIL were trading at a price level of Rs 432, down by 0.29 per cent on NSE.
The Joint Venture Company's registered office will be located in Odisha, India. Regarding the Board of Directors, both BHEL and CIL will have the authority to nominate three Directors each to serve on the JVC's Board.
During the quarter ending December, the state-owned coal miner recorded a nearly 17 per cent year-on-year increase in its consolidated net profit, reaching Rs 9,093 crore compared to Rs 7,719 crore in the corresponding period of the previous fiscal year. In contrast, Bharat Heavy Electricals Ltd. (BHEL) reported a standalone net loss of Rs 163 crore for the third quarter as opposed to a net profit of Rs 31 crore in the corresponding period of the last year.
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