Shares of NLC India Ltd gained momentum after the company successfully secured a coal block in Odisha during the first day of the 10th round of commercial coal mine auctions on November 21, 2024. The auction, conducted by the Coal Ministry, saw a total of five mines awarded to various companies, including ACC Ltd and JSW Energy Utkal Ltd.
As of 9:22 am the shares were trading 2.92% higher at ₹260.40 on NSE
Auction Highlights
- Winning Companies: NLC India Ltd, ACC Ltd, JSW Energy Utkal Ltd, Mineware Advisors Pvt Ltd, and Shreeji Nuravi Coal Mining and Trading Pvt Ltd.
- Mine Location: Odisha, strengthening NLC India’s coal portfolio in the region.
- Geological Reserves: The five awarded coal mines hold a combined 2,630.77 million tonnes of coal.
- Production Capacity: The cumulative peak rated capacity of these blocks is 12 MTPA.
- Investment and Employment:
- Expected annual revenue of ₹1,106.91 crore upon operationalization.
- Capital investment of ₹1,800 crore.
- Employment opportunities for 16,224 people.
Significance for NLC India
The acquisition of the coal block aligns with NLC India’s strategic focus on securing raw materials for its power generation business and reducing dependency on external coal supplies. This move is expected to enhance the company’s operational efficiency and support its expansion plans in the renewable and thermal energy sectors.
Government Initiative
The 10th round of commercial coal auctions, launched on June 21, 2024, aims to boost domestic coal production and attract private investments. Forward e-auctions for nine coal blocks commenced on November 21, with five blocks successfully allocated on the first day.
