Shares of Coal India Ltd (CIL) were trading almost 2% higher on 7 October after the company announced signing a Memorandum of Understanding (MoU) with Chhattisgarh Mineral Development Corporation Ltd. (CMDC).

The firm and the Chhattisgarh Mineral Development Corporation Ltd. (CMDC), a Chhattisgarh State Government undertaking, have signed a non-binding MoU to collaborate on the exploration and development of key minerals and other minerals of mutual interest.

In September, the Ministry of Mines, Government of India, proclaimed the company to be the chosen bidder for the Ontillu-Chandragiri Rare Earth Element (REE) exploration block.

Coal India Ltd reported a 3.9% year-on-year decline in coal production to 48.97 million tonnes (MT) in September 2025, compared to 50.94 MT in the same month last year. The fall in output comes despite government initiatives to ramp up domestic coal production and curb imports of dry fuel.

CIL did not specify reasons for the decline, but several of its subsidiaries, including Bharat Coking Coal Ltd (BCCL), Central Coalfields Ltd (CCL), Western Coalfields Ltd (WCL), Mahanadi Coalfields Ltd (MCL), and Northeastern Coalfields (NEC), recorded lower production during the month.

For the April–September period, cumulative coal output fell to 329.14 MT, down from 341.35 MT in the same period last year.

CIL, which contributes over 80% of India’s total coal production, has set an ambitious target of 875 MT of coal production and 900 MT of dispatches for FY2025–26 to meet the country’s growing power demand and reduce dependence on coal imports.

At 2:45 pm, the shares of Coal India were trading 0.69% higher at Rs 384.55 on NSE. 

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