Coal India, NTPC and 3 other stocks to benefit as Centre plans major coal mining reforms

Synopsis: The Central Government put forward a proposal for scrapping the existing 50 percent ceiling on annual coal and lignite sales from captive mines and includes the extension of maximum lease tenures from 30 to 50 years

The Central Government has proposed scrapping the existing 50 percent ceiling on annual coal and lignite sales from captive mines, currently mandated under the Mines and Minerals Act (MMDR Act).

Under existing rules, captive mine operators can sell only up to half of their annual output after meeting their linked end-use plant requirements, leaving significant stockpiles unutilised. These legacy dumps pose environmental and safety concerns and occupy valuable space, particularly in smaller mines. 

The coal ministry’s public consultation paper suggests removing this cap to allow unrestricted market sale of surplus and legacy stocks, aligning provisions with reforms already applied to non-coal minerals under the MMDR Amendment Act, 2025. Proponents argue this will enhance mineral availability, clear stockpiles, boost market supply, stabilise prices, and reduce import dependence while generating additional revenue through higher royalties and contributions to District Mineral Foundations and National Mineral Exploration Trust.

Broad MMDR Amendments Planned, Longer Leases & Operational Flexibility Beyond the captive sales cap removal, the government’s proposed MMDR amendments include relaxing end-use conditions for state and public sector entities facing logistical constraints, providing regulatory clarity for coal gasification projects, and revising area limits for prospecting licences and mining leases to better reflect modern mechanised mining needs. 

Another point to highlight is the proposal of extending the maximum lease tenures from 30 to 50 years, as this would eliminate frequent renewal and would support long-term planning. This draft also calls for strengthening  measures against illegal mining and transportation by enhancing enforcement capabilities. Stakeholders, including state governments and industry participants, have been invited to comment as part of the consultation process. With this news on rounds lets see who all could be the possible beneficiaries of this new amendment- 

Coal India Ltd

Coal India Ltd is primarily involved in the mining and production of coal, and also in the operation of coal washeries in order to enhance fuel quality. The company supplies coal mainly to the power generation and steel industries, which together would account for the largest share of its demand. In addition, Coal India even caters to a diversified customer base across other key sectors such as cement manufacturing, fertilisers, and brick kilns, and supports a wide range of industrial and infrastructure activities in India.

In the latest quarter Coal India Ltd saw a YoY revenue fall of 3.19 percent, going from Rs 31,182 Cr in Q2FY25 to Rs 30,187 Cr in Q2FY26, while the QoQ went down by 15.7 percent from Rs 35,842 Cr in Q1FY26. The YoY Net Profits has fallen by 31 percent, going from Rs 6,275 Cr in Q2FY25 to Rs 4,263 Cr in Q2FY26, while the QoQ fell by 51 percent from Rs 8,734 Cr in Q1FY26.

JSW Energy

JSW Energy Ltd, along with its subsidiaries, is primarily engaged in the generation of power through its diversified power assets located across Karnataka, Maharashtra, Nandyal, and Salboni. In addition to power generation, the company is also involved in coal mining operations, including its 74 percent stake in the KSK Mahanadi coal-linked asset. 

The mined coal is largely used for captive consumption at its thermal power plants, ensuring fuel security, cost optimisation, and operational efficiency. The company’s Thermal segment contributes as much as 64 percent to the net generation of electricity(from energy sources like coal).

In the latest quarter JSW energy saw a YoY revenue growth of 60 percent, going from Rs 3,238 Cr in Q2FY25 to Rs 5,177 Cr in Q2FY26, while the QoQ went up by 0.6 percent from Rs 5,143 Cr in Q1FY26. The YoY Net Profits fell by 6 percent, from Rs 877 Cr in Q2FY25 to Rs 824 Cr in Q2FY26, while the QoQ fell by 1.4 percent from Rs 836 Cr in Q1FY26.

National Thermal Power Corporation (NTPC)

National Thermal Power Corporation or NTPC Ltd is primarily engaged in the business of generating and selling bulk power to state power distribution utilities across India. Beyond its core power generation business, the company is also actively involved in coal mining operations to support fuel requirements.

 In Q1FY265, NTPC’s coal production stood at 10.88 MMT, while the cumulative coal production since  inception till Q1FY26 stood at 161.6 MMT , with around 16.76 percent of its total coal requirement sourced from captive mines. Notably, these captive coal blocks recorded a dispatch growth of 2.61 percent, reflecting improved operational efficiency and enhanced fuel security for the company’s thermal power plants.

In the latest quarter the company saw a YoY revenue growth of 0.18 percent, going from Rs 44,706 Cr in Q2FY25 to Rs 44,786 Cr in Q2FY26, while the QoQ went down by 4.8 percent from Rs 47,065 Cr in Q1FY26. The YoY Net Profits fell by 2.8 percent, going from Rs 5,380 Cr in Q2FY25 to Rs 5,225 Cr in Q2FY26, while the QoQ fell by 14 percent from Rs 6,108 Cr in Q1FY26.

Gujarat Mineral Development Corporation Limited

Gujarat Mineral Development Corporation Ltd (GMDC) is primarily engaged in two key segments, which are- mining and power generation. Within its mining portfolio, coal mining is a significant focus area, marking the company’s strategic expansion beyond traditional minerals. Moreover, GMDC has secured new coal mines in Odisha with geological reserves exceeding 2095 MT, strengthening its long-term resource base and positioning the company for future growth in the coal and energy value chain.

In the latest quarter GMDC saw a YoY revenue fall of 11 percent, going from Rs 593 Cr in Q2FY25 to Rs 528 Cr in Q2FY26, while the QoQ went up by 27 percent from Rs 733 Cr in Q1FY26. The YoY Net Profits growth is at 264 percent, going from Rs 128 Cr in Q2FY25 to Rs 466 Cr in Q2FY26, while the QoQ growth stood at 184 percent from Rs 164 Cr in Q1FY26.

Adani Power Limited

Adani Power Ltd (APL), a part of the diversified Adani Group, is the largest private thermal power producer in India, with a significant portion of its electricity generation based on coal-fired power plants. To strengthen fuel security and improve cost efficiencies, the company has been developing four captive coal mines with a combined production capacity of around 14 MTPA, supporting its growing thermal power generation portfolio.

In the latest quarter APL saw a YoY revenue growth of 0.88 percent, going from Rs 13,339 Cr in Q2FY25 to Rs 13,457 Cr in Q2FY26, while the QoQ went down by 4.6 percent from Rs 14,109 Cr in Q1FY26. The YoY Net Profits went down by 11 percent, going from Rs 3,298 Cr in Q2FY25 to Rs 2,906 Cr in Q2FY26, while the QoQ fell by 12 percent from Rs 3,305 Cr in Q1FY26.

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