Coal India, BHEL on radar after joint venture agreement for ammonium nitrate plant

On February 29, 2020, Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL) signed a joint venture agreement (JVA) to undertake the Coal to Chemicals project. The JVA was signed in the presence of Union Minister for Coal and Steel, Shri Narendra Singh Tomar, and other senior officials from both companies.

Under the JVA, CIL will provide coal feedstock to BHEL's ammonium nitrate plant located at Durgapur in West Bengal. The plant is expected to produce 300 metric tons of ammonium nitrate per day and will be operational by the end of 2021.

The Coal to Chemicals project is a significant step towards diversifying India's economy from coal-based industries to chemical-based industries. It is also expected to create employment opportunities in the region and boost economic growth.

Investors were interested in the news as it could potentially lead to increased demand for coal and related products, which could positively impact the share prices of Coal India and BHEL.

As of February 29, 2020, the share price of Coal India Limited was INR 167.50 per share, while the share price of Bharat Heavy Electricals Limited was INR 3,480.00 per share.