Coal India announces closure of its Kolkata-based subsidiary

“We wish to inform you that, the Board of Directors of the Company at its meeting held on 25th October 2024 had inter alia, approved the closure of CIL Solar PV Limited (CSPL), a wholly-owned subsidiary of the Company,” the company said in a regulatory filing.

The state-owned coal producer cited that CPSL had not undertaken any commercial activities since its incorporation on April 16, 2021, as the reason for its closure.

Its closure is projected to be completed within an eight to 10-month time frame.

Reason for closure

“Since inception, CSPL has not undertaken any commercial activities,” Coal India said.

The company further stated that the current highly competitive dynamics of the solar power value chain favour private players.

Coal India added that “CPSEs are restricted to procure cheaper alternative of Solar PV manufacturing technologies from countries sharing a land border with India, including China”. This has resulted in an uneven playing field by impacting the feasibility of the project.

The PSU disclosed that CSPL had not entered into any binding agreement before the closure announcement.

The Kolkata-based subsidiary bore a loss of ₹54,149 after accounting for tax in the financial year 2023-24.

Its total net worth in FY24 amounted to ₹4.01 lakh, while its revenue and turnover were nil.