Coal India rallies nearly 3% on signing 17 fuel pacts

MUMBAI: Shares of Coal India gained momentum and were near day’s high following reports that the company has signed 17 fuel pacts for supply of coal for capacity of 15,440 MW.

The stock ended at Rs 303.65, up 2.91 per cent, on the BSE. It touched a high of Rs 304.80 and a low of Rs 292.65 in trade today.

According to reports, the company has signed fuel pact for Adani's 3,330 MW Maharashtra unit, JSPL's 1,200 MW Tamnar unit, JP Power's 3x600 MW unit and Lanco's 1,920 MW Amarkantak unit.

The company has around 150 FSAs pending.

According to reports, the company will be selling 493 million tonnes of coal this financial year. There are expectations of improvement in availability of coal as far dispatches are concerned.

"According to our target as on today we are running certainly a shortfall of about five million tonnes production and around 3.5 million tonnes in the coal offtake. We might end the first half, that is 30th September, around the same. We have to make up the shortfall in the second fall. We are pretty confident. We should be able to achieve the 482 million tonnes of production and 492 million tonnes of off take," S Narsing Rao, CMD, Coal India said in an interview to ET Now.