Coal India approves ₹3,190-cr investment in BCGCL; ₹3,133-cr equity infusion in JV with DVC

State-owned Coal India Ltd (CIL) on Wednesday (February 4) said its board has approved an equity investment of ₹3,189.54 crore in Bharat Coal Gasification and Chemicals Ltd (BCGCL), through subscription to equity shares.

The project, under pre-implementation, will have a capacity of 0.66 MTPA of ammonium nitrate and aims to meet the explosives requirement of CIL and reduce import dependence. BCGCL was incorporated on May 21, 2024. The project implementation period is 48 months.

Bharat Coal Gasification and Chemicals is a subsidiary of Coal India. Coal India holds 51% in BCGCL, while BHEL holds 49%.

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Separately, CIL's board also granted in-principle approval for an equity infusion of ₹3,132.96 crore in a proposed joint venture with Damodar Valley Corporation (DVC), part of a total project cost of ₹20,886.40 crore with a 70:30 debt–equity ratio.

The JV will focus on thermal and renewable power projects, including energy storage, to meet growing energy demand and ensure energy security in DVC’s valley area and other regions. CIL and DVC will hold 50% equity each, with 30% funded through cash equity infusion and 70% through debt.

Both investments fall under related-party transactions and will be carried out at the face value of equity shares, with no additional governmental approvals required for the BCGCL equity subscription.

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Shares of Coal India Ltd ended at ₹434.70, up by ₹4.45, or 1.03%, on the BSE today, February 4.