State-run Coal India Ltd on Monday (March 23) said it has granted an in-principle approval for the divestment of up to 25% of its equity in South Eastern Coalfields Ltd (SECL) through an offer for sale (OFS). In addition, South Eastern Coalfields Ltd will issue fresh equity shares aggregating up to 10% of its post-issue paid-up capital.
The approvals, cleared by CIL’s board in a meeting, allow the stake sale and fresh issue to be conducted in one or more tranches via an initial public offer (IPO) or other permissible domestic market routes. The move follows earlier in-principle approval for South Eastern Coalfields Ltd’s listing granted through a circular resolution dated December 23, 2025.
The proposed listing and divestment remain subject to regulatory approvals and completion of necessary formalities. The approvals will be communicated to the Ministry of Coal for onward submission to the Department of Investment and Public Asset Management (DIPAM).
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Further, Coal India has approved a 100% corporate guarantee of up to ₹3,160 crore for its subsidiary, CIL Rajasthan Akshay Urja Ltd (CRAUL), to support funding for a solar power project. The guarantee will back debt financing for CIL Rajasthan Akshay Urja Ltd’s planned 875 MW solar photovoltaic (PV) plant, forming part of its capital expenditure requirements.CIL Rajasthan Akshay Urja Ltd is a joint venture between Coal India Ltd and Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), a Rajasthan government-owned company. Coal India holds a 74% stake in the entity, while RRVUNL owns the remaining 26%.
The company stated that the transaction is conducted at arm’s length, given Coal India’s majority ownership in the joint venture. It also clarified that there is no additional interest from the promoter, promoter group, or group companies in the transaction. The corporate guarantee exposes Coal India to a potential liability of up to ₹3,160 crore in the event of any default by CRAUL in meeting its debt obligations.
Shares of Coal India Ltd ended at ₹455.40, down by ₹12.30, or 2.63%, on the BSE today, March 23.
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First Published: Mar 23, 2026 8:42 PM IS
