Nagpur: Western Coalfields Limited (WCL), a major public sector undertaking (PSU) in the region, is expected to receive a mandate for an initial public offering (IPO) by the end of the current financial year. Additionally, the newly appointed chairman-cum-managing director, Hemant Pande, who assumed office on Monday, announced that coal gasification and critical minerals are among the company's new priority areas.
IPO Mandate and Listing Plans
WCL is a subsidiary of Coal India Limited (CIL), which was listed on the stock exchange in 2010. The Ministry of Coal has recently mandated the listing of its subsidiaries, with a separate mandate to be issued for each company. Dhanbad-based Bharat Coking Coal Limited (BCCL) and Central Mine Planning and Design Institute (CMPDI) are already listed. This will be followed by Mahanadi Coalfields Limited (MCL) and South Eastern Coalfields Limited (SECL), based in Odisha and Chhattisgarh, respectively.
Speaking to TOI, Pande stated, "WCL would be next in line, and a mandate is expected by the year's end." He further explained, "Each company also has to get an individual mandate first. A number of factors, especially profitability, are considered before proceeding with the decision." The last declared profits of WCL stand at Rs 2,163 crore.
Coal Gasification and Critical Minerals
WCL, in collaboration with Bharat Petroleum Corporation Limited (BPCL), is establishing a coal gasification plant at Bhadravati in Chandrapur district. "BPCL's expertise in handling gas will combine with the availability of coal from WCL. WCL plans to build a plant with a capacity to produce 633.6 million metric standard cubic per day of synthetic gas," Pande said.
Bhadravati is emerging as a national hub for coal gasification, with three private sector companies also constructing coal gasification facilities in the area. Pande also highlighted that WCL has already identified 18 critical minerals in six of its mines. "There are plans to issue tenders for further exploration and take the project forward," he added.
Focus on Power Sector and Mine Closure
Regarding the mainstay business, the CMD stated that the plan is to ensure an increase in coal despatches to the power sector. "There is no shortfall with the power plants; however, substantial coal remains at the mines' pithead. This needs to be cleared faster to further bolster the stock with power plants," he explained.
WCL is also looking to resolve certain pending issues concerning project-affected persons (PAPs). The PSU will undertake a major mine closure exercise, the biggest in the entire CIL. The plan involves closing 21 mines and implementing initiatives that will provide a source of livelihood to local residents, according to Pande.
