Coal India zooms ~7% as government considers offering 100 mines to private companies

25 Feb 2022 , 02:01 PM

Shares of Coal India added 6.97% in noon trade on Friday after the Coal Ministry envisaged partnerships with private companies to operate mines that had been previously shut or seen discontinued production by the state-owned company.

Coal India was already looking to offer more than 100 of those mines to the private sector on a revenue-sharing basis within a short period.

As per the reports, the government of India held a consultation meeting, in which major players like Adani Enterprises, Tata Power, Essel Mining, JSW, and Jindal Steel participated.

However, there is no clarity in whether the plan will be implemented or not.

Coal India is an Indian coal-mining PSU, accounting over 80% of India’s output. Recently, Coal India also reported strong quarterly numbers with a consolidated net profit of Rs4,558.39 crore for the quarter ended December 2021, on the back of higher revenues.

At around 2.00 PM, Coal India was trading at Rs160.40, up by 6.97% against its previous closing price of Rs149.95. It touched day’s high and low of Rs160.40 and Rs152.25 respectively.