NLC India Ltd. announced on Monday that it has signed a coal mine development and production agreement for the Machhakata coal mine in Odisha. The 'Navratna' company won the bid for the Machhakata (revised) coal mine in Odisha's Angul district during the Ministry of Coal's eigth round of commercial coal block e-auction, according to an exchange filing.
The coal block boasts an estimated coal reserve of approximately 1.38 billion tonnes and has a peak-rated operational capacity of 30 million tonnes per annum. This marks NLC India's second commercial coal mine acquisition, following the North Dhadu Coal Block (Western Part). The company is on track to increase its production capacity to over 100 MTPA by 2030, up from the current 50 MTPA, the filing said.
The coal extracted from the Machhakata mine will enhance India's energy security by providing a domestic source of coal. Furthermore, the development opens up opportunities for alternative energy production methods, such as coal gasification, aligning with sustainability goals, it said.
Shares of NLC India closed 6.66% higher at Rs 297.75 apiece, as compared with a 0.18% rise in the benchmark BSE Sensex.
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