Coal India share price in focus: Board approves over ₹6,300 cr in investments, firm to set up holding co in Chile; check details

Coal India Ltd’s board on Wednesday approved setting up an intermediate holding company in Chile to pursue critical mineral opportunities, including lithium and copper, as both countries move closer to finalising a free trade agreement.

Commerce and Industry Minister Piyush Goyal had recently said negotiations between India and Chile for an FTA would be concluded soon, and the pact would provide greater access to critical minerals for domestic businesses.

Chile has large reserves of lithium, copper, rhenium, molybdenum, and cobalt, which are key inputs for sectors such as electronics, automobiles, and solar energy.

In a regulatory filing, CIL said it will hold 100% equity in the proposed intermediate holding company in Chile. The incorporation will be subject to regulatory approvals from the Department of Investment and Public Asset Management (DIPAM) and the Ministry of Coal.

Coal India: Fresh investments

In a separate filing to the stock exchanges, the CIL board also approved an equity infusion of ₹3,132.96 crore in a proposed energy joint venture with Damodar Valley Corporation (DVC). The investment forms part of the total indicative project cost of ₹20,886.40 crore, with a debt-equity ratio of 70:30, officials said.

Separately, the board cleared an investment of ₹3,189.54 crore in its subsidiary Bharat Coal Gasification and Chemicals Ltd (BCGCL) to fund a coal-to-ammonium nitrate project. The approval covers Coal India's equity contribution towards its promoter stake in the joint venture.

The coal-to-ammonium nitrate project, to be set up in Odisha, will have an annual capacity of 0.66 million tonnes per annum. "The project is under the pre-implementation stage," CIL said.

Coal India upgrades pay scale of executives

Recently, Coal India upgraded the pay scale of its executives up to the mid-level, with notional effect from January 1, 2017, the company said in a regulatory filing.

The financial impact of the pay revision will, however, be payable prospectively from August 23, 2023, it said.

According to the filing late on Monday, the total estimated financial impact of the upgradation for the period up to December 31, 2026, is approximately ₹3,400 crore.

Coal India Q3 FY26 Earnings schedule

The state-run firm is slated to announce its December quarter numbers on Thursday, February 12.