Coal India Ltd (CIL) is exploring moving to other pastures for growth. After struggling to ramp up production of coal for some time now, the firm has not been able to deliver shareholder returns this year due to a barrage of concerns.
A shift towards renewable energy, environment concerns for thermal power sector, and competition from merchant minors have led to a de-rating of the stock. As a result, it has been among the biggest losers in 2020, sliding 36% compared to the 17% gains in Nifty 500.
Against that backdrop, Coal India’s venture into solar power value chain business and renewable energy vertical and an integrated aluminium complex comes across as bold and aggressive. Reports suggest that the firm is likely to invest ₹1 trillion in these ventures, which is a lot.
