Coal India has signed a non-binding memorandum of understanding (MoU) with Hindustan Urvarak & Rasayan (HURL) to explore the development of a coal gasification-based urea production project at Sindri in Jharkhand. The announcement was made during market hours on 29 September 2026.

Under the MoU, the companies will initially assess the technical, commercial and implementation aspects of the proposed project. The exercise will also facilitate the preparation of a preliminary feasibility report (PFR), which will be used to evaluate the project's viability before any further development decisions are taken.

Coal India is India's largest coal producer and a Maharatna public sector undertaking. It primarily operates in coal mining and production, supplying coal to the power, steel, cement, fertiliser and other industrial sectors. The Government of India held a 61.13 per cent stake in the company as of June 2026.

The proposed initiative would examine the use of coal gasification for producing urea at Sindri. The MoU is non-binding and relates to the exploration and assessment stage, with the feasibility report expected to provide a basis for considering the project's technical and commercial potential. No investment size or project completion timeline was disclosed in the announcement.

On a consolidated basis, Coal India's net profit increased 0.63 per cent year-on-year to Rs. 88.52 bn in Q1 FY26, while net sales rose 7.77 per cent to Rs. 462.55 bn. The company had reported the figures for the quarter ended June 2026 against the corresponding period of the previous year.

Coal India's shares ended 0.72 per cent higher at Rs. 424.65 on the BSE on 29 September. The market performance followed the announcement of the MoU, which forms part of the company's stated business activities across coal-linked industrial and downstream sectors.