Coal India Limited ( coal india ) has approved a strategic investment in its renewable energy subsidiary, CIL Rajasthan Akshay Urja Limited (CRAUL), marking a step towards diversifying into green power generation. The Board of Directors, meeting on July 27, 2026, authorized a cash subscription of ₹22.2 lakh for 2,22,000 equity shares at ₹10 each. This move reinforces the company’s commitment to developing solar, wind, and pumped storage projects (PSPs) in Rajasthan, aligning with broader energy transition goals while leveraging existing partnerships.

The transaction is structured as a rights issue within CRAUL, a joint venture between Coal India and Rajasthan Rajya Vidyut Urja Nigam Limited (RVUNL). Under the approved terms, Coal India will subscribe to 2,22,000 equity shares, while RVUNL will subscribe to 78,000 equity shares at the same price of ₹10 per share. This proportional investment ensures that Coal India retains its 74% stake in the entity, with RVUNL maintaining the remaining 26%. The total paid-up capital of CRAUL stands at ₹10 lakh prior to this expansion, with no turnover reported as the entity was incorporated on June 9, 2025.

Transaction Details

The following table outlines the specific parameters of the approved rights issue:

This investment is not classified as a related party transaction under SEBI regulations, nor does it involve promoter group interests beyond the established joint venture structure. No governmental or regulatory approvals are required for this acquisition, streamlining the execution process. The company expects to complete the subscription within 30 days from the date of opening the rights issue.

Strategic Objectives

CRAUL is mandated to develop, construct, and operate renewable energy infrastructure, including solar power plants, wind farms, and pumped storage facilities. The primary business model involves selling generated power to RVUNL under Section 62 of the Electricity Act, 2003. Additionally, the entity may supply renewable power to state DISCOMs, third-party buyers, or commercial and industrial customers across India, subject to mutual consent and applicable laws. This framework allows CRAUL to maximize revenue streams by accessing both regulated distribution channels and open market opportunities.

What the Numbers Show

While the absolute value of this initial capital injection is modest at ₹22.2 lakh, it signals a formal operational start for CRAUL, which has reported nil turnover since its incorporation in June 2025. The retention of a 74% controlling stake by Coal India indicates a strong intent to manage project execution directly, rather than taking a passive minority position. Given that no external regulatory hurdles exist, the speed of implementation will depend largely on internal resource allocation and land acquisition progress in Rajasthan, rather than bureaucratic delays.

Coal India Limited has fixed September 4, 2026, as the record date to determine shareholder eligibility for a final dividend of ₹5.25 per equity share for FY 2025-26. The Maharatna company’s Board of Directors recommended the payout on April 27, 2026, subject to shareholder approval at the upcoming 52nd Annual General Meeting (AGM). This distribution reinforces Coal India’s commitment to returning capital to investors, with payments to be made exclusively through RBI-approved electronic modes, marking the complete discontinuation of physical warrants, cheques, or demand drafts.

The 52nd AGM will be conducted via Video Conferencing and Other Audio-Visual Means (VC/OAVM) on August 31, 2026, at 11:00 A.M. Shareholders can participate and vote electronically through the facility available at www.evoting.nsdl.com . The meeting adheres to the Companies Act, 2013, and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, including MCA circulars dated April 8, 2020, April 13, 2020, May 5, 2020, and September 22, 2025. Participants joining via VC will be reckoned for the purpose of quorum under Section 103 of the Companies Act, 2013.

Key AGM and Dividend Details

Shareholders seeking exemption or a lower rate of Tax Deduction at Source (TDS) must submit relevant forms via the CIL Tax Portal at https://taxportal.coalindia.in or by emailing cl.tax@coalindia.in . The company emphasized that submissions made to other email IDs, portals, or the Registrar and Share Transfer Agent will not be considered. The application of beneficial tax rates depends on the completeness of the documentation and the company's review.

Digital Transition and Compliance

In compliance with SEBI’s Fifth Amendment Regulations, 2025, dated November 18, 2025, Coal India has omitted the existing provisos to Regulation 12 regarding physical dividend dispatch. Consequently, all dividends will be transferred directly to shareholders’ bank accounts. Demat account holders are instructed to update their KYC details to facilitate this online transfer. Physical mode shareholders must register their email addresses with the Registrar & Transfer Agent, Alankit Assignments Limited, by sending a signed request letter, self-attested PAN, and share certificate copy to rta@alankit.com .

The Notice of the AGM and the Integrated Annual Report for FY 2025-26 will be dispatched electronically to shareholders with registered email addresses. These documents are also available on the websites of Coal India Limited, BSE Limited, National Stock Exchange of India Limited, and NSDL. Shareholders who have not registered email addresses can generate login credentials for e-voting by following instructions in the AGM Notice.