Coal India on Wednesday said only two of its subsidiaries will be affected by the Supreme Court verdict allowing states to recover from the Centre and the mining companies royalty on mineral rights and mineral bearing lands since April 2005.

The payment of the demand of the tax shall be staggered in instalments over a 12-year period commencing April 1, 2026.

“We have calculated that in a phased manner only two companies are being affected — Mahanadi Coalfields and Central Coalfields. For other companies there is no impact,” Coal India chairman P.M. Prasad said at the PSU’s annual general meeting. Coal India has eight subsidiaries.

According to Prasad, the liabilities for Central Coalfields (CCL) and Mahanadi Coalfields (MCL) would be around ₹364 crore and around ₹31,200 crore, respectively.

“In Central Coalfields, it is only ₹364 crore between 2006 and 2023, that is around 17 years. So, this is not much significant,” Prasad said.

In MCL, the Orissa Rural Infrastructure and Socio-economic Development Act, 2004, had come into effect from 2005.

MCL deposited the tax under protest for four months. The state government lost the case in the high court and it returned the money, which MCL gave back to its consumers.

According to Prasad, the company would be able to recover around 70-75 per cent of its total liabilities from its customers with whom it has long-term fuel supply agreements (FSAs).

“A good amount of around ₹24000-25000 crore” could be recovered from the FSA customers in phases.

However, this is still under study and Coal India is evaluating its legal options.

“Of course, all these are under study, and we are in consultation with the solicitor general. Since at the high court, the state government (Odisha) had lost, and the act was repealed at that time, so we are taking the legal course,” Prasad said.

In 2023-24, Coal India had achieved its highest ever capital expenditure of ₹23,475.41 crore, surpassing the target of ₹16,500 crore.

Prasad said Coal India is on track in terms of capex spend in the first quarter of the ongoing fiscal, which is expected to be ramped up from the third quarter.

Prasad said Coal India is pursuing the acquisition of critical minerals, including lithium, in the domestic market and overseas and stressed that it would continue to take part in the auction of such blocks.

"With an objective to reduce the import dependence of critical minerals such as lithium, cobalt, CIL is actively pursuing acquisition of these mineral assets in India and abroad."