Coal India

Supplies are running well ahead of production, so the company is selling out of stock. Across April to August production fell 4.5 percent to 267.5 million tonnes while supplies rose 6.7 percent to 322.9 million tonnes, a gap of about 55 million tonnes in five months. Pithead inventory is the variable to watch, because a gap of that shape cannot widen indefinitely.

The unit becomes the platform for lithium, rare earths, copper and coking coal, with an Australia focus, and will also trade iron ore. India has been pushing state miners to secure supply outside China. This is the first legal structure behind a diversification the company has talked about for two years.

Coal India produced 50.35 million tonnes, up 8.42 percent, and dispatched 63.67 million tonnes, up 17.43 percent. Cumulative production for FY27 to July stands at 302.24 million tonnes against dispatch of 354.70 million tonnes. Dispatch is growing at more than twice the rate of production, so stock is coming off pitheads rather than accumulating, and dispatch is the figure that actually reaches power generation.

It will build two 300 MW units at about Rs 2,831 crore. Power sells at Rs 2.73 per unit, completion within 18 months of the PPA. The win advances its diversification into renewables.