Coal India Ltd has signed a joint venture agreement with U.P. Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) to develop renewable energy projects in Uttar Pradesh. The agreement, signed on July 3, 2026, aims to establish a presence in the renewable energy sector through various projects including ground-mounted solar, floating solar, pumped storage projects, and wind projects. This strategic move allows Coal India to diversify its energy portfolio while contributing to the state's green energy goals.

The joint venture entity will be incorporated as a Private Limited Company with an initial paid-up capital of INR 10 lakh and an authorised share capital of INR 10 crore. Coal India will hold a 51% equity stake in the venture, while UPRVUNL will hold the remaining 49%. The registered office of the new entity will be located in Lucknow, Uttar Pradesh.

Governance and Operational Structure

The governance framework of the joint venture has been clearly defined to ensure smooth operations. The Board will consist of five directors, with Coal India nominating three directors and UPRVUNL nominating two. Coal India will also have the right to nominate the Chairperson of the Board. The agreement includes pre-emptive rights for further share issuance to maintain the existing shareholding ratio. Additionally, there is a lock-in period of five years on share transfers, subject to the terms of the Joint Venture Agreement.

The transaction does not fall under related party transactions, as both parties are Central and State Public Sector Enterprises respectively. The filing was made to the stock exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Details of the Agreement

Coal India increased coal supplies to the country's power plants to 51.44 million tonnes in June FY27, registering a 5.9% growth over 48.57 million tonnes supplied in the corresponding month last year, driven by rising electricity demand in the peak summer season. The company recorded a 7.5% growth in its overall coal supplies during June FY27, reaching 65.8 million tonnes compared to 61.2 million tonnes in June of the previous year. Total coal supplies during Q1 FY27 stood at 197.7 million tonnes, up 3.5% from 191 million tonnes supplied during the corresponding period of the previous fiscal.

Sector-wise Supplies

Coal supplies to the non-regulated sector registered robust growth, increasing by 14.8% to 14.50 million tonnes in June FY27 from 12.63 million tonnes in June last year. During Q1 FY27, supplies to the non-regulated sector rose 10% to 43.10 million tonnes, compared to 39.02 million tonnes in the same period of FY26. The following table summarises the sector-wise performance:

Operational Efficiency

The higher supplies enabled Coal India to liquidate 28.3 million tonnes of pithead coal stock during Q1 FY27. The reduction in pithead stock was a conscious business decision aimed at improving inventory turnover, reducing carrying costs, and enhancing supply chain efficiency. This strategy marks a shift from a purely volume-driven approach to a value-driven and demand-responsive operating model.

Further strengthening its logistics network, Coal India recorded a 23% growth in coal supplies through its first-mile connectivity (FMC) infrastructure during Q1 FY27. Supplies through FMC reached 66.76 million tonnes, reflecting continued progress in enhancing evacuation infrastructure. The company is progressing towards its production target of 815 million tonnes and supply target of 850 million tonnes for FY27.