Coal India Ltd, the world's biggest coal miner by output, Wednesday overtook Reliance Industries Ltd(RIL). to become India's biggest company by market capitalization, reflecting robust demand for natural resources in Asia's third-largest economy. At around 1200 hours on the National Stock Exchange, Coal India Ltd (CIL) commanded a market cap of Rs 250,759.67 crore, with an over 2 per cent rise in its share price. At that time, RIL had a market cap of Rs 250,580.21 crore on the NSE. A few minutes later, CIL's market valuation exceeded that of RIL on the BSE as well. At around 1206 hrs, RIL's market cap on the BSE stood at Rs 2,50,468 crore, slightly lower than CIL's Rs 2,50,538 crore.
About Coal India: Coal India, incorporated in 1973 in Kolkata is the world's largest coal miner and a leading public sector undertaking engaged in coal mining, selling coal in India. It has total coal reserves of 64.3 billion tons and proven reserves of 52.4 billion tons. The company operates 471 mines in 21 coalfields across 8 states in India. Its 9 wholly-owned subsidiaries are Eastern Coalfields Ltd (ECL), Bharat Coking Coal India Ltd (BCCL), Central Coalfields Ltd (CCL), Northern Coalfields Ltd (NCL), Western Coalfields Ltd (WCL) and South Eastern Coalfields Ltd (SECL). Maharatna firm Coal India reported a 64% jump in the consolidated net profit at Rs 4,143 crore for the first quarter ended June 30. The company had posted a consolidated net profit of Rs 2,525 crore in the April-June period of 2010.
The use of sophisticated software systems for coal mining that is mostly burnt for power generation and steel production and adds to the greenhouse effect is valid for western countries who may allocate resources and funds to alternative and more greener sources of power. Some of the alternatives may be "safer" than the traditional mines. Unfortunately, coal publications show developing economies are more likely to increase their use of thermal coal & metallurgical coal in coming years because of its affordability and to meet increasing demands for electricity and steel. Whether they will embrace and utilise sophisticated software systems that no doubt add to the cost of production is yet to be seen. Cherry of www.coalportal.com
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