Taking a cue from the government's move to launch the auction of 41 coal mines for commercial mining, shares of state-owned entity Coal India rose more than 6 per cent in Thursday's trading. The scrip ended the day at Rs 137.55, edging up 6.22 per cent from the previous closing mark. Earlier during the day, Prime Minister Narendra Modi launched the auction of the coal blocks via video conferencing. According to a release, the Ministry of Coal, in association with FICCI, is launching the process for auction of 41 coal mines under the provisions of Coal Mines (Special Provisions) Act and Mines and Minerals (Development and Regulation) Act. to achieve self-reliance in the coal sector.
Analysts believe the move is expected to ramp up India's coal output in the coming years."The launching of the auction of 41 coal mines for commercial mining by PM Modi is important from different perspectives. This is a major step in making India self-reliant in energy sector. It will unlock resources of a nation with the world's fourth largest reserves. It will boost domestic coal output and slash imports. Apart from attracting huge capital investments, it could result in these mines contributing ~15% of projected total coal output in FY26," Deepak Jasnai, Head Retail Research, HDFC Securities said.
The broader market too, on Thursday, finished on a strongky positive note. The 30-share BSE Sensex rose more than 700 per cent, or 2.09 per cent to finish at 34,208.05