Coal India Limited issued a regulatory clarification on January 12, 2026, following a material price movement observed in the company's share price. The clarification was submitted to both BSE and NSE under Regulation 30(11) of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Background of Price Movement

The material price movement in Coal India's shares was attributed to media reports that emerged regarding the company's subsidiary. A news item appeared with the headline "Fund from IPO will help Bharat Coking Coal Limited [BCCL] diversify into rare earth metals," which prompted the need for official clarification from the parent company.

Key Clarification Details

Coal India Limited provided specific details regarding the financial structure of BCCL's public offering:

The clarification emphasized that while BCCL has issued an OFS, the complete proceeds from this offering will flow to Coal India Limited as the holding company, rather than remaining with BCCL for its own diversification activities.

Regulatory Compliance

The announcement was made in compliance with SEBI regulations governing material price movements. Coal India's Executive Director (Company Secretary) and Compliance Officer, B.P. Dubey, signed the clarification document digitally on January 12, 2026.

Market Context

The clarification serves to correct any market misconceptions about fund utilization from BCCL's public offering. By confirming that proceeds will accrue to the holding company, Coal India has provided transparency regarding the actual financial beneficiary of the subsidiary's OFS, ensuring investors have accurate information about fund flows within the corporate structure.

The Central Government has proposed comprehensive reforms to India's coal mining sector, including scrapping the existing 50% ceiling on annual coal and lignite sales from captive mines and extending maximum lease tenures from 30 to 50 years. These changes could significantly benefit major coal-dependent companies across the power and mining sectors.

Proposed Mining Reforms Overview

Under existing regulations mandated by the Mines and Minerals Act (MMDR Act), captive mine operators can sell only up to half of their annual output after meeting their linked end-use plant requirements. This restriction has resulted in significant stockpiles remaining unutilised, creating environmental and safety concerns while occupying valuable space, particularly in smaller mines.

The coal ministry's public consultation paper proposes removing this cap to allow unrestricted market sale of surplus and legacy stocks, aligning provisions with reforms already applied to non-coal minerals under the MMDR Amendment Act, 2025.

Key Benefits and Additional Amendments

Proponents argue these reforms will enhance mineral availability, clear stockpiles, boost market supply, stabilise prices, and reduce import dependence while generating additional revenue through higher royalties and contributions to District Mineral Foundations and National Mineral Exploration Trust.

Beyond the captive sales cap removal, the proposed MMDR amendments include:

• Relaxing end-use conditions for state and public sector entities facing logistical constraints
• Providing regulatory clarity for coal gasification projects
• Revising area limits for prospecting licences and mining leases
• Strengthening measures against illegal mining and transportation
• Eliminating frequent renewal requirements through extended lease tenures

Companies Positioned to Benefit

Coal India Ltd

Coal India is primarily involved in coal mining and production, operating coal washeries to enhance fuel quality. The company supplies coal mainly to power generation and steel industries, while also serving cement manufacturing, fertilisers, and brick kilns across India.

JSW Energy

JSW Energy Ltd operates diversified power assets across Karnataka, Maharashtra, Nandyal, and Salboni. The company holds a 74% stake in the KSK Mahanadi coal-linked asset, with mined coal used for captive consumption at thermal power plants. The thermal segment contributes 64% to net electricity generation.

National Thermal Power Corporation (NTPC)

NTPC Ltd generates and sells bulk power to state distribution utilities across India. The company's coal production stood at 10.88 MMT in Q1FY26, with cumulative production since inception reaching 161.60 MMT. Approximately 16.76% of total coal requirements are sourced from captive mines, which recorded 2.61% dispatch growth.

Gujarat Mineral Development Corporation Limited

GMDC operates in mining and power generation segments, with coal mining representing a significant focus area. The company has secured new coal mines in Odisha with geological reserves exceeding 2,095 MT, strengthening its long-term resource base.

Adani Power Limited

Adani Power Ltd operates as India's largest private thermal power producer, with significant coal-fired power plant capacity. The company is developing four captive coal mines with combined production capacity of approximately 14 MTPA to support its thermal power generation portfolio.

Stakeholders, including state governments and industry participants, have been invited to comment as part of the consultation process for these comprehensive mining sector reforms.