Coal India Board Gives In-Principle Nod to SECL Listing
New Delhi: The Board of Directors of Coal India Limited (CIL) has granted in-principle approval for the listing of its subsidiary, South Eastern Coalfields Limited (SECL), marking a significant step in the government’s broader disinvestment and capital market roadmap for coal sector PSUs.
In a regulatory filing, Coal India stated that the approval was accorded through a circular resolution of the Board and will be communicated to the Ministry of Coal (MoC) for onward submission to the Department of Investment and Public Asset Management (DIPAM).
The move follows guidance from the Ministry of Coal, which last week advised CIL to initiate concrete steps towards the listing of its subsidiaries, including Mahanadi Coalfields Limited (MCL) and SECL, in the upcoming financial year.
Coal India clarified that the proposed listing of SECL will be subject to multiple regulatory clearances, including approvals from market regulator SEBI, and completion of any internal restructuring, if required. The company did not provide further details on the timeline or structure of the proposed listing.
SECL’s Strategic Importance
South Eastern Coalfields Limited operates coal mines primarily across Chhattisgarh and Madhya Pradesh, with its headquarters located in Bilaspur, Chhattisgarh. SECL accounts for a substantial share of Coal India’s overall coal production, making it one of the PSU’s most significant subsidiaries.
SECL is also set to become India’s first coal PSU to adopt paste fill technology for underground coal mining—a move seen as a major step towards sustainable and environmentally responsible mining practices.
Paste filling is an advanced underground mining technique that eliminates the need for surface land acquisition. After coal extraction, the voids are filled with a specially engineered paste made from fly ash, crushed overburden, cement, water and binding agents, helping prevent land subsidence and ensuring long-term mine stability.
To operationalise this technology, SECL signed a ₹7,040 crore agreement with TMC Mineral Resources Pvt. Ltd. in April.
Other Subsidiary Developments
Mahanadi Coalfields Limited, which was carved out of SECL in 1992, is headquartered in Sambalpur, Odisha. MCL operates four joint ventures—Mahanadi Basin Power Ltd., MJSJ Coal Ltd., MNH Shakti Ltd. and Mahanadi Coal Railway Ltd. The company reported coal production of 193.26 million tonnes in FY 2022–23.
Market Reaction
Shares of Coal India Limited closed 3.6% higher at ₹400.35 on the BSE ahead of the announcement, outperforming the broader market. The stock has gained around 4% on a year-to-date basis, while the benchmark Sensex remained largely flat.