Shares of Coal India Limited, the state-owned coal mining and refining giant, witnessed a strong rally during early trading hours on Friday, February 28, 2025, even as the broader market remained under pressure. On the National Stock Exchange (NSE), Coal India’s stock surged 3.27% to touch an intraday high of ₹375.75 per share.
The surge in Coal India’s stock price was primarily driven by recent developments concerning its subsidiary, Northern Coalfields Limited (NCL). As per the latest announcement, NCL will implement a ‘Singrauli Punarasthapan (Rejuvenation) Charge’ of ₹300 per tonne on coal dispatches from all its mines. This new levy is set to take effect from May 1, 2025, and will be applied uniformly on top of the notified price of coal.
The market’s positive reaction suggests that investors may be factoring in potential revenue implications from the additional charge. However, broader market conditions remained weak, making Coal India’s strong performance stand out.
As the implementation date approaches, stakeholders will closely watch how this move impacts Coal India’s financials and coal pricing dynamics in the coming months.
Coal India’s New Charge Expected to Generate ₹3,877.50 Crore; A Look at the Company’s Legacy and Market Standing
Coal India Limited (CIL) has announced that its subsidiary, Northern Coalfields Limited (NCL), will introduce a ‘Singrauli Punarasthapan (Rejuvenation) Charge’ of ₹300 per tonne on coal dispatches from all its mines. According to the company’s regulatory filing, this additional charge is projected to generate approximately ₹3,877.50 crore in revenue. The levy, which will be applied on top of the notified coal price, is set to come into effect from May 1, 2025.
Coal India’s Legacy and Scale of Operations
Coal India Limited, a state-owned coal mining corporation, was established in November 1975 and has since grown to become the largest coal producer in the world. In its founding year, the company had a modest coal production of 79 million tonnes (MTs). Over the decades, it has significantly expanded its operations, becoming a crucial player in India’s energy sector.
CIL operates through multiple subsidiary companies, managing coal mining activities in 84 mining areas across eight states in India. The company plays a vital role in ensuring energy security for the country, supplying coal to various industries, including power generation, steel, and cement manufacturing.
Market Capitalisation and Recognition
Coal India has earned the ‘Maharatna’ status, a prestigious designation conferred by the Government of India to select public sector enterprises with substantial financial autonomy and strategic importance. The company’s strong market presence is reflected in its valuation—as of February 28, 2025, Coal India’s market capitalisation stood at ₹2,31,071.50 crore on the National Stock Exchange (NSE).
With its extensive operations and a key role in India’s energy landscape, Coal India remains a significant entity in the country’s industrial ecosystem. The introduction of the new charge by NCL adds an interesting dimension to the company’s financial strategy and future revenue prospects.
Coal India’s Stock Performance: A Look at Its 52-Week High and Low
Coal India Limited (CIL) has witnessed significant fluctuations in its stock price over the past year, reflecting changing market conditions and investor sentiment. The company’s shares reached their 52-week high of ₹543.55 per share on the National Stock Exchange (NSE) on August 26, 2024. This peak marked the stock’s strongest performance over the past year, indicating a period of heightened investor confidence and favorable market conditions at that time.
Conversely, the stock saw a downturn in early 2025, hitting its 52-week low of ₹349.25 per share on February 17, 2025. This decline represents the lowest price point for the stock within the past year, influenced by market trends, sector-specific factors, or broader economic conditions.
The wide range between its highest and lowest trading prices over the year underscores the volatility in the stock, which could be driven by various internal and external factors such as changes in coal demand, regulatory policies, global energy trends, and company-specific developments. Investors and industry watchers continue to monitor the company’s stock movements closely, given its significant role in India’s coal and energy sector.
Coal India’s Year-to-Date Performance and Market Trends
Shares of Coal India Limited (CIL), a Maharatna public sector company, have experienced a 4% decline year-to-date. While this drop reflects some market pressure, it is notably less severe compared to the broader market trend. In comparison, the NSE Nifty50 index, which serves as a key benchmark for the Indian stock market, has declined approximately 6% over the same period.
Coal India’s Intraday Performance Amid a Weak Market
Despite the overall weakness in the stock market, Coal India shares showed resilience during early trading hours on Friday, February 28, 2025. At around 9:57 AM, the stock was trading at ₹374.95 per share, marking a 3.05% increase from its previous closing price of ₹363.85 on the NSE.
Broader Market Trends
While Coal India’s stock showed an upward trend, the broader equity market was under pressure. On Friday morning, benchmark indices were trading in negative territory, reflecting a broader market downturn. The BSE Sensex, India’s leading stock index, was down by 993 points, trading at 73,618 levels. Similarly, the Nifty 50 index was down by 1.37%, trading at 22,237 levels.
The contrasting performance between Coal India shares and the broader market on Friday highlights the influence of company-specific developments, such as the newly announced Singrauli Punarasthapan (Rejuvenation) Charge, which may have contributed to the stock’s gains despite an overall bearish market sentiment.