Coal India Limited has announced the closure of its step-down subsidiary, MJSJ Coal Limited, following a decision by the company’s board. The subsidiary is linked to Mahanadi Coalfields Limited, another subsidiary of Coal India. The decision to close MJSJ Coal Limited is pending approval from the Ministry of Coal and the Department of Investment and Public Asset Management (DIPAM).
The closure comes in the wake of the subsidiary not being operational, compounded by the cancellation of coal blocks by the Supreme Court of India. The company did not specify any binding agreements for the sale of the unit or the financial impact in terms of turnover or net worth contribution from the subsidiary during the last financial year.
This move is part of Coal India’s ongoing efforts to streamline its operations and focus on its core areas of production and distribution. The company has not provided a specific timeline for the closure, indicating that it will proceed upon receiving the necessary governmental approvals.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).