Coal India Targets Turnaround with Subsidiary's Return to Dividend List

Coal India is working to eliminate Rs 2,200 crore in losses at its subsidiary, Eastern Coalfields Ltd, aiming to rejoin the dividend list by FY 2025-26. Chairman P M Prasad expressed confidence in achieving production targets and reducing thermal coal imports while highlighting efforts in connectivity and diversification.

Coal India is on a mission to erase Rs 2,200 crore in accumulated losses at Eastern Coalfields Ltd (ECL), a subsidiary, with plans to rejoin the dividend list by the fiscal year 2025-26, according to a senior official.

During a recent foundation day event, Chairman P M Prasad noted that Bharat Coking Coal Ltd, another former deficit subsidiary, has already re-entered the dividend circle. With confidence, he predicted ECL would replicate such success by the targeted fiscal year.

Prasad also highlighted the potential of the Gevra mine under South Eastern Coalfields, projected to become the world's largest. Furthermore, Coal India aims to boost underground production significantly and enhance first-mile connectivity to mitigate financial losses and curb thermal coal imports.

(With inputs from agencies.)