Rs 25,000 Crore Project: President of India-Backed Coal Mining Company and AM Green Aim for India’s Largest RE Supply Contract; Sign MoU
The stock is up by 13.2 per cent from its 52-week low of Rs 349.2 per share and has given multibagger returns of 200 per cent in 3 years.
In what would be one of the world’s largest renewable energy contracts, Coal India Limited (CIL) plans to supply 4500 MW of carbon-free energy, in a phased manner, to upcoming green ammonia facilities of AM Green Ammonia (India) Private Limited. It would be through a combination of solar and wind, whose capacities CIL aims to set up on pan pan-India basis. This initiative aligns with India’s national goal of achieving a cleaner energy mix and transition towards net-zero emissions.
A formal non-binding memorandum of understanding (MoU), for long-term supply and sourcing of renewable energy, was inked on 7th May between the two entities. While the solar power capacity would be to the tune of 2500 MW to 3000 MW, wind is expected to account for between 1500 MW and 2000 MW at an estimated total outlay of around Rs. 25,000 Crores. Potential sites for wind projects will be explored in the southern states of the country. And, for solar plants in the sunny states like Gujarat and Rajasthan. AM Green will integrate the two renewable sources supplied by CIL with pumped hydro storage to ensure a steady supply of green energy to AM Green facilities.
AM Green, promoted by the founders of Greenko, one of India’s leading energy transition solutions providers, targets to produce 5 million tons per annum (MTPA) of green ammonia by 2030. This equals approximately 1 MTPA of green hydrogen and represents a fifth of India’s target for green hydrogen production under the National Green Hydrogen Mission.
The agreement was signed by Sudarsan Bora, GM (E&M), representing CIL, while his counterpart from AM Green was Shatanshu Agrawal, Sr. Vice President – Business Development. Present were P M Prasad, Chairman, CIL, Mukesh Choudhary, Director (Marketing) CIL and Anil Kumar, GM (MM & Solar) CIL.
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About the Company
Coal India Ltd, a giant public sector company under India's Ministry of Coal, is the world's largest coal producer. Established in 1973 through the nationalisation of the coal industry, Coal India Ltd mines and produces coal, operating washeries to process it. Their primary customers are power and steel plants, but they also supply coal to cement factories, fertiliser companies, and brick kilns.
In the fourth quarter ending March 31, 2025, the company reported a Revenue from Operations of Rs. 37,824.54 Crore, slightly lower than the Rs. 38,213.48 Crore recorded in the same period of the previous year; however, the Profit After Tax (PAT) for the quarter demonstrated strong growth, reaching Rs. 9,592.53 Crore, a 12 per cent increase from the Rs. 8,530.39 Crore in Q4 of FY 2023-24. For the full fiscal year 2024-25, the Revenue from Operations amounted to Rs. 1,43,368.92 Crore, a marginal decrease compared to the Rs. 1,44,762.42 Crore in the prior fiscal year, while the Profit After Tax (PAT) for the year stood at Rs. 35,302.10 Crore, down from Rs. 37,369.13 Crore year-on-year, and the company achieved a Capital Expenditure (CAPEX) of Rs. 19,410.02 Crore, as compared to Rs. 23,475.41 Crore in the previous fiscal year.
The company has a market cap of over Rs 2.3 lakh crore and has been maintaining a healthy dividend payout of 46 per cent. The shares of the company have a PE of 7x, an ROE of 40 per cent and an ROCE of 48 per cent. The stock is up by 13.2 per cent from its 52-week low of Rs 349.2 per share and has given multibagger returns of 200 per cent in 3 years.
Disclaimer: The article is for informational purposes only and not investment advice.