In a major step toward restructuring and unlocking value within India’s largest coal producer, Coal India has granted in-principle approval to list two of its key subsidiaries — Mahanadi Coalfields (MCL) and South Eastern Coalfields (SECL) — on stock exchanges.
The decision, formalised via circular resolutions on 23 December 2025, follows a directive from the Ministry of Coal (MoC), which issued an office memorandum on 16 December, instructing the Maharatna PSU to initiate the listing process for its high-performing arms during the upcoming financial year (FY2026–27).
Government Directive and Strategic Intent
According to official filings with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), Coal India’s board resolutions align with the Ministry of Coal’s broader strategy to “take concrete steps” for listing subsidiaries MCL and SECL. The proposals will be submitted to the Department of Investment and Public Asset Management (DIPAM) for further evaluation and clearance.
This move forms part of the government’s continued focus on value unlocking and governance enhancement in public sector undertakings (PSUs), particularly in the energy and mining sectors. It also fits within India’s larger privatization and capital market participation framework, aimed at professionalizing PSU management while mobilizing private capital into strategic industries.
Financial and Operational Highlights
Both subsidiaries are financial powerhouses within Coal India’s portfolio, together accounting for a dominant share of national coal production:
| Subsidiary | FY25 Revenue (INR Cr) | FY25 PAT (INR Cr) | Headquarters | Key States of Operation |
|---|---|---|---|---|
| Mahanadi Coalfields Limited (MCL) | 28,662 | 10,825 | Sambalpur, Odisha | Odisha |
| South Eastern Coalfields Limited (SECL) | 27,824 | 4,487 | Bilaspur, Chhattisgarh | Chhattisgarh, Madhya Pradesh |
MCL, carved out of SECL in 1992, has since grown into one of India’s most profitable coal PSUs and was accorded Miniratna status in 2019. SECL, also a Mini Ratna, operates across the central Indian coal belt and contributes the largest share of Coal India’s total output — producing approximately 167.5 million tonnes of coal in FY2024–25.
Technological and Sustainability Initiatives
SECL is emerging as a pioneer in adopting advanced mining technologies. It is set to become the first coal PSU in India to deploy paste fill mining technology, a sustainable underground mining method that reduces land acquisition needs and prevents subsidence by refilling mined voids with a fly ash and cement mixture.
Earlier this year, SECL inked an INR 7,040 crore agreement with TMC Mineral Resources to implement this eco-friendly system across key mines, underscoring the company’s commitment to sustainable extraction and environmental responsibility.
Mahanadi Coalfields & South Eastern Coalfields IPO Timeline
The IPOs of MCL and SECL are expected to conclude during FY27, after securing regulatory approvals from SEBI and completing internal restructuring where required. The listings are anticipated to provide enhanced operational autonomy, market visibility, and direct investor exposure to two of India’s most productive coal assets.
The market responded positively to the announcement. Shares of Coal India rose 3.6% on the BSE, closing at INR 400.35 on December 23 — reflecting investor optimism about the company’s ongoing restructuring and capital market initiatives.
Parallel Listing Plans
Southeastern Coalfields and Mahanadi Coalfields IPO approval comes amid broader IPO activity within Coal India’s network.
- Bharat Coking Coal (BCCL) and Central Mine Planning & Design Institute have already filed draft IPO papers with SEBI.
- BCCL’s INR 1,300 crore IPO, expected in early January 2026, and CMPDI’s planned offer later in Q1 2026, are part of Coal India’s phased divestment roadmap.
These listings collectively mark a historic transformation for Coal India — from a monolithic PSU into a diversified, market-driven holding structure.
Conclusion
With in-principle approvals now in place and the Ministry of Coal steering the process, Coal India’s structural reorganization is gathering momentum. The proposed listings of MCL and SECL signal not only a significant capital market event but also a turning point in India’s public-sector modernization narrative — balancing the twin imperatives of state control and market efficiency.
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