Coal India share price rises 3% as subsidiary NCL to impose additional charge on coal dispatches; all you need to know

The additional charge is expected to generate around ₹3,877.50 crore, NCL said in a regulatory filing.

The levy will be applied uniformly on top of the notified price of coal.

NCL operates mainly in Madhya Pradesh's Singrauli and Uttar Pradesh's Sonbhadra districts, supplying coal to power and non-power sectors.

The company produced 117 million tonnes of coal till January 2025, contributing significantly to Coal India's overall output.

The move comes amid efforts by CIL subsidiaries to bolster revenue and support mine rehabilitation and resettlement projects in coal-bearing regions, PTI reported, citing industry sources.

About NCL

NCL is a wholly owned subsidiary of Coal India Limited, under the Ministry of Coal, Government of India, and a Mini Ratna (Category-I) company since 2007. The organisation’s main products include non-coking coal in the range of grades G5 to G13, besides ‘De-shale Coal’ and the ‘Coal Rejects.'

About 88% of the coal produced is dispatched to the power sector. NCL has a share of about 15% in the nation’s total coal production, i.e., a contribution of about 10% in total power generation, per the PSU website.

As per reports, NCL is the third largest subsidiary with sales of ~138 million tonnes in FY24, contributing 18% of CIL’s total sales volume.

About Coal India

Coal India Limited (CIL) is the state-owned coal mining corporation that came into being in November 1975. CIL is a Maharatna company—a privileged status conferred by the Government of India to select state-owned enterprises in order to empower them to expand their operations and emerge as global giants.

CIL has seven producing subsidiaries, namely Eastern Coalfields Limited (ECL), Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL), Western Coalfields Limited (WCL), South Eastern Coalfields Limited (SECL), Northern Coalfields Limited (NCL), and Mahanadi Coalfields Limited (MCL), and one mine planning and consultancy company, which is Central Mine Planning & Design Institute (CMPDI).

In addition, CIL has a foreign subsidiary in Mozambique, namely Coal India Africana Limitada (CIAL). The mines in Assam, i.e., North Eastern Coalfields, are managed directly by CIL.

Coal India share price trend

Shares of Coal India have fallen over 16% in the past 12 months and 30% over the past six months.