Coal India gains on JV with BHEL for ammonium nitrate plant in Odisha, BHEL falls

Shares of Coal India gained nearly 1 percent at the open on the NSE on February 29 after signing a joint venture agreement for setting up an ammonium nitrate plant as part of the planned coal-to-chemical business with BHEL, on February 28.

At 9:20am, the stock was trading at Rs 437.30. On the other hand, BHEL shares traded down nearly 1 percent at Rs 222.

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In an exchange filing on February 28, Coal India reported that it had signed a joint venture agreement (JVA) with BHEL, to undertake coal to chemicals business. Under the JVA, they will be setting up a coal to 2000 TPD ammonium nitrate plant using BHEL’s in-house developed PFBG (pressurised fluidised bed gasification) technology.

Coal India will hold 51 percent stake and the remaining 49 percent will be owned by BHEL. The joint venture company will be incorporated in Odisha as a private limited company with an initial paid-up share capital of Rs 1,00,000.

For Q3FY24, Coal India reported a net profit of Rs. 9,069.19 crore up 16.94 percent from Rs. 7,755.55 crore in the previous fiscal. BHEL reported a net loss of Rs 163 crore for the quarter ended December 31, 2023 as against Rs 31 crore profit in the year-ago period.

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