Source The Hindu
NEW DELHI – In a major move to overhaul the governance of India’s energy sector, the Prime Minister’s Office (PMO) has directed the Ministry of Coal to ensure that all subsidiaries of state-run Coal India Limited (CIL) are listed on the stock exchanges by 2030.
The directive aims to enhance accountability, streamline operations, and unlock significant value through asset monetization. Coal India, which currently produces over 80% of India’s domestic coal, operates through eight primary subsidiaries. Under the new mandate, each of these arms will transition into publicly traded entities over the next five years.
Phased Listing Timeline
The government has already set a fast-track schedule for the first wave of Initial Public Offerings (IPOs).
By March 2026: Bharat Coking Coal Ltd (BCCL) and Central Mine Planning & Design Institute Ltd (CMPDIL) are slated for their market debuts. BCCL has already completed domestic and international roadshows and filed its Draft Red Herring Prospectus (DRHP) with SEBI.
Next Financial Year: The CIL board has granted in-principle approval for the listing of South Eastern Coalfields Ltd (SECL) and Mahanadi Coalfields Ltd (MCL), following specific instructions from the Coal Ministry.
By 2030: The remaining subsidiaries, including Eastern Coalfields, Central Coalfields, Western Coalfields, and Northern Coalfields, will be mapped and listed systematically.
Subsidiary Expected Listing Current Status
BCCL March 2026 DRHP filed; Roadshows completed
CMPDIL March 2026 DRHP filed
SECL FY 2026-27 In-principle board approval
MCL FY 2026-27 In-principle board approval
Unlocking Value and Governance
The decision is seen as a strategic step to modernize the public sector undertaking (PSU). By listing individual subsidiaries, the government intends to:
Enhance Transparency: Public listing mandates rigorous quarterly reporting and independent audits, bringing higher visibility to the operational performance of each coal block.
Asset Monetization: Divesting minority stakes (expected to be around 10% initially for units like BCCL) will help the government raise capital while allowing the parent company to maintain control.
Operational Efficiency: Market exposure is expected to drive competitiveness within the subsidiaries as they strive to meet investor expectations and production targets.
Coal India has set an ambitious production target of 875 million tonnes for the current financial year. Analysts suggest that the listing of heavyweights like MCL and SECL—which contribute the lion’s share of CIL’s profits—could lead to a significant re-rating of Coal India’s stock on the bourses.
The move follows a December 16, 2025, memorandum from the Ministry of Coal, signaling a clear shift toward a more market-oriented approach for India’s largest fossil fuel producer.
