Coal India, IRCON International sign non-binding MoU to develop rail infrastructure

Coal India Ltd (CIL) and IRCON International Limited signed a non-binding Memorandum of Understanding (MoU) in Kolkata on Wednesday, October 8.

The MoU aims to improve rail infrastructure for Coal India and its subsidiaries. It is a non-binding agreement that outlines the intent of both companies to work together on rail development projects related to CIL’s operations.

This week, the Maharatna PSU also entered into an agreement with Chhattisgarh Mineral Development Corporation (CMDC). The non-binding Memorandum of Understanding aims to collaborate on the exploration and extraction of critical minerals and other minerals of mutual interest.

September coal output

Further, CIL on October 1 had reported a 3.9% decline in production to 48.97 million tonnes (MT) in September. The drop in production comes in spite of the government making efforts to increase coal output to bring down the import of dry fuel.

The company's output was 50.94 MT in the corresponding month of the previous fiscal year. However, no reasons were given by the company for the decline.

Last month, on September 16, CIL emerged as the preferred bidder for the Ontillu-Chandragiri Rare Earth Element (REE) exploration block by the Ministry of Mines, marking a key step in the Maharatna company’s diversification into critical minerals.

The exploration licence deed is to be executed within one year of issuance of the Letter of Intent by the state government.

Coal India share price

At close, the shares of Coal India settled 0.69% lower at ₹382.05 on the National Stock Exchange (NSE). The announcement, however, came after market hours.

Over the past five trading sessions, the company’s shares have fallen by 2.05%, and they have declined 1.29% over the past month. The stock also slipped 0.21% over the last six months and is down 1.13% on a year-to-date basis.

Coal India’s shares hit a 52-week high of ₹502.45 on October 14, 2024, and a 52-week low of ₹349.25 on February 17, 2025. As of October 8, the company’s market capitalisation stood at ₹2,35,447.04 crore.