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  4. As coal demand soars, govt-run Coal India awards Rs 766 crore order for supply of explosives

As coal demand soars, govt-run Coal India awards Rs 766 crore order for supply of explosives

Coal is a primary energy source in India, meeting 55% of the nation's energy needs, with Coal India producing over 80% of the country's coal. The stock prices of both GOCL Corp and Coal India saw notable movements following this development.

Edited By: Nitin Kumar @Niitz1 New Delhi Published on: October 22, 2023 7:35 IST
coal
Image Source : PEXELS Production going on in coal factory building during night time.

The supply of coal to the power sector by government-owned Coal India increased by 3.4 per cent to 294.8 million tonnes in the first six months (April to September) of the current financial year 2023-24. The total amount of coal supplied stood at 1.8 MT, more than the 293 MT demand projected for the six months. According to the Ministry of Coal's website, coal is the most important and abundant fossil fuel in India. It accounts for 55 per cent of the country's energy needs. Coal India's supplies shot up to 360.7 MT during the April-September period as against 332 MT in the year-ago period.

As the demand remains elevated, Coal India has awarded a significant order to energetics and commercial explosives firm GOCL Corporation, according to a regulatory filing on BSE.

The order worth Rs 766 crore order involves supplying bulk explosives to Coal India which was conferred the Maharatna status by the government in 2011.

The order will be completed over a period of two years — from October 2023 to October 2025.

Coal is the largest source of electricity in India and the government-run Coal India Limited produces over 80 per cent of coal in India. 

On Friday, GOCL Corp shares hit a new 52-week high after the announcement about the Rs 766 crore order from Coal India. The stock touched a new high of Rs 622.95. On the other hand, Coal India shares closed at Rs 312.30.

The explosives are used at mining sites for blast purposes. Besides, GOCL Corporation also supplies products for mining infrastructure projects. 

Coal India, under the Ministry of Coal, is the country’s largest coal-producing company. It is also the world's largest coal miner.

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