Coal India Approves ₹31.33 Billion Investment in Joint Venture Project
Coal India has approved a ₹31.33 billion investment in a joint venture project with a total cost of ₹208.86 billion. The project will be financed through a 70:30 debt-equity ratio structure, demonstrating the company's strategic approach to expansion through partnerships and optimal capital utilization.
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Coal India has announced its board approval for a substantial investment in a joint venture project, marking a significant step in the company's expansion strategy. The mining giant has committed ₹31.33 billion towards this strategic partnership, reflecting its focus on growth through collaborative ventures.
Investment Structure and Financial Framework
The joint venture project represents a major capital commitment with comprehensive financial planning. The investment details highlight the scale and strategic importance of this initiative for Coal India's future operations.
| Parameter: | Details |
|---|---|
| Coal India Investment: | ₹31.33 billion |
| Total Project Cost: | ₹208.86 billion |
| Financing Structure: | 70:30 debt-equity ratio |
Project Financing Strategy
The project will be financed through a structured approach utilizing a 70:30 debt-equity ratio. This financing mechanism indicates a balanced approach to funding, where 70% of the total project cost will be funded through debt instruments while the remaining 30% will come from equity contributions. This structure allows for optimal capital utilization while managing financial risk effectively.
Strategic Implications
The approval of this substantial investment underscores Coal India's commitment to expanding its operational footprint through strategic partnerships. The joint venture model enables the company to leverage shared resources, expertise, and risk distribution while pursuing large-scale projects that require significant capital investment.
Historical Stock Returns for Coal India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.28% | +2.84% | +1.64% | +16.75% | +16.28% | +216.87% |
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