Coal India Limited (CIL) has officially announced the closure of its step-down subsidiary, MJSJ Coal Limited. The decision was approved by the CIL Board, following necessary regulatory compliance. The closure is primarily due to the subsidiary never commencing operations and the subsequent cancellation of associated Coal Blocks by the Hon’ble Supreme Court. The final closure process awaits necessary approvals from the Ministry of Coal and DIPAM.
Approval for Subsidiary Closure
The Board of Directors of Coal India Limited (CIL) has granted inter-alia approval for the complete closure of MJSJ Coal Limited. This entity was a step-down subsidiary under Mahanadi Coalfields Limited. This action aligns with disclosure requirements applicable to listed entities, ensuring full transparency regarding corporate restructuring.
Details of MJSJ Coal Closure
The accompanying annexure provided specific details regarding the rationale and status of the closure, as mandated by relevant regulations. Key highlights include:
- There was no binding agreement or sale transaction involved in the process.
- The subsidiary did not contribute any turnover, revenue, or income to the listed entity during the last financial year, nor was any net worth contribution recorded.
Reasons for Cessation of Operations
The primary reasons necessitating the closure are detailed as follows:
- The entity was not in operation.
- The closure is necessitated by the cancellation of the associated Coal Blocks by the order of the Hon’ble Supreme Court.
Timeline for Finalization
The estimated time for the final closure is contingent upon the receipt of final approval from the Ministry of Coal and DIPAM. Coal India Limited confirms that all relevant details have been submitted for record-keeping.
Source: BSE
