In very surprising news, Coal India witnessed its share price rising to Rs. 198.60, touching a 52-week high. The share price rose over 4% on intraday trading on Tuesday.
Share prices had previously surged 52 per cent in the last six months. Here is a brief rundown of the story.
Key Highlights of the Story
- Share prices of Coal India Ltd. touched a 52-week high.
- Share prices rose to Rs. 198.60.
- This rise implies a 52% surge in the last 6 months and a 67% surge over the year.
The shares of Coal India rose primarily due to a buoyant mood among Indian equity investors and the positive outlook for the company. The shares of the company have risen by 35% to pre-Covid levels.
Moreover, there has been a steady demand for coal and thermal power. The company has been able to raise production as well. This demand for coal has risen because of the decrease in stockpiles at power plants.
Limited supplies are expected to keep coal prices surging high.
About Coal India
In 2021, India’s coal ministry, in its agenda, stated that the company should consider diversifying into newer business prospects. They suggested that the company should explore areas like electric vehicles and charging pods.
They emphasised diversification because of the inevitability of limiting carbon emissions. As environmental regulations tighten, the future for coal does not look very bright. Moreover, renewable resources rather than non-renewable ones will be the order of the day.
Hence, the company is looking into different ventures, some of which are mentioned below:
- Solar wafer manufacturing
- Surface coal gasification
- Coal bed methane
- Solar power generation
Coal India is looking to diversify in the future and cover newer realms. Moreover, it is also planning to spend around Rs. 1.22 lakh crores on coal-based projects. Hence, even in the future, it is likely that the state-run company will diversify and stay relevant even when non-renewable resources are fast depleting.
Frequently Asked Questions
- What is Coal India’s output?
Coal India accounts for around 80% of the domestic coal output. Moreover, it is aiming for 1 billion tonnes of output by 2024.
- How does Coal India propose to spend its Rs. 1.22 lakh crores?
Here is the break-up of how Coal India plans to spend its Rs. 1.22 lakh crores:
|Rs. 32,696 crore||coal evacuation|
|Rs. 25,117 crore||mine infrastructure|
|Rs. 29,461 crore||project development|
- What is the price of Coal futures globally?
Coal futures have touched $240 a tonne with 170% gains.