In a move aimed at enhancing transparency and unlocking value, the Prime Minister's Office (PMO) has directed the Coal Ministry to list all subsidiaries of Coal India Limited (CIL) by 2030. This directive intends to streamline governance and improve accountability within the state-run coal giant.
CIL, which accounts for over 80% of India's domestic coal output, operates through eight subsidiaries: Eastern Coalfields Ltd, Bharat Coking Coal Ltd (BCCL), Central Coalfields Ltd, Western Coalfields Ltd, South Eastern Coalfields Ltd (SECL), Northern Coalfields Ltd, Mahanadi Coalfields Ltd (MCL), and Central Mine Planning & Design Institute Ltd (CMPDI).
The listing process is expected to occur in phases, with Bharat Coking Coal Ltd and Central Mine Planning & Design Institute Ltd leading the way. Preparations for their stock market listings are reportedly complete, with expectations of hitting the exchanges by March 2026. Domestic and international roadshows for BCCL have already concluded, signaling the advanced stage of its listing process. Bharat Coking Coal Ltd had filed its draft red herring prospectus (DRHP) with SEBI for an offer for sale (OFS) of up to 46.57 crore equity shares. The IPO size is expected to be around ₹1,300 crore, implying a pre-listing valuation of roughly ₹13,000 crore for BCCL. SEBI approved the initial public offering on September 19, 2025, and the company is expected to launch the public issue in early 2026.
Following suit, Coal India's board has given in-principle approval for listing South Eastern Coalfields Ltd and Mahanadi Coalfields Ltd. This decision follows a specific directive from the Coal Ministry, urging CIL to take concrete steps to list these subsidiaries in the upcoming financial year. The IPOs of MCL and SECL are expected to conclude during FY27, after securing regulatory approvals from SEBI and completing internal restructuring where required.
Mahanadi Coalfields is the largest bottom-line contributor to Coal India's consolidated net profit. In FY25, MCL contributed 30% to the consolidated profits of the company, worth ₹10,823 crore, and holds a net worth of ₹18,278 crore. SECL holds the largest output reserve of Coal India. In FY25, Mahanadi Coalfields' revenue stood at ₹28,662 crore, with a profit after tax of ₹10,825 crore, while South Eastern Coalfields' revenue was ₹27,824 crore, with a profit after tax of ₹4,487 crore.
The government's push for listing CIL's subsidiaries aligns with its broader strategy to unlock value from public sector companies and enhance governance. The move is expected to provide enhanced operational autonomy, market visibility, and direct investor exposure to these key coal assets.
Coal India is targeting 1 billion tonnes of coal production by FY 2028-29. The company also aims to become a Net Zero Energy Company and is implementing a 3 GW solar power program by 2025-26.
