Sical Logistics Wins ₹534.73 Crore Coal Mining Contract From Central Coalfields
Sical Logistics Limited (NSE: SICALLOG) has received a Letter of Acceptance (LoA) worth ₹534.73 crore, including GST, from Central Coalfields Limited (CCL) for a five-year mining-related contract in Jharkhand.
The Letter of Acceptance was dated September 1, 2026, and covers the hiring of Heavy Earth Moving Machinery (HEMM) for overburden removal and coal extraction at the SDOC Mine of Dhori Area in Bokaro district.
₹534.73 Crore Contract for Five Years
The total contract value is ₹534.73 crore, inclusive of 18% GST, with an execution period of five years or 1,825 days.
Under the contract, Sical Logistics will undertake overburden removal and coal extraction in a 143-hectare diverted patch of lower seams at the SDOC Mine.
The scope includes:
- 201.355 lakh cubic metres of overburden re-handling
- 336.533 lakh cubic metres of hard overburden removal
- Extraction of 91.036 lakh tonnes of coal
The contract was awarded by Central Coalfields Limited through an e-tender process.
Long-Term Revenue Visibility
The five-year contract provides Sical Logistics with a significant period of operational and revenue visibility.
Unlike a short-duration order, the project is expected to run for 1,825 days, allowing the company to deploy heavy equipment and resources over an extended period.
However, the actual financial impact will depend on the pace of execution, coal and overburden volumes handled, operating costs and project margins.
Expands Sical’s Mining Operations
The contract strengthens Sical Logistics’ exposure to the mining and mine-development services segment, particularly activities involving heavy earth-moving equipment.
The project requires specialised machinery and involves both overburden removal and coal extraction, making execution capabilities and equipment utilisation important factors for profitability.
For Sical, successful execution could also strengthen its track record in large-scale mining contracts and support opportunities for similar projects in the future.
Central Coalfields Is the Contracting Entity
The order has been awarded by Central Coalfields Limited, a major coal-mining company operating in Jharkhand.
The project is located in the Dhori Area of Bokaro district, providing Sical Logistics with exposure to India’s coal-production infrastructure.
No Promoter Interest or Related-Party Transaction
Sical Logistics has confirmed that the promoter, promoter group and group companies have no interest in Central Coalfields Limited.
The company has also stated that the contract does not fall under related-party transactions.
Points to consider
The ₹534.73 crore contract is a significant positive development for Sical Logistics, primarily because of its size and five-year duration.
The order provides long-term project visibility and strengthens the company’s presence in mining services, while the large scope of overburden removal and coal extraction creates a substantial execution opportunity.
Investors should monitor project commencement, equipment deployment, execution volumes, operating costs, cash flows and margins to assess the eventual earnings impact.
Sical Logistics has secured a ₹534.73 crore, five-year contract from Central Coalfields for overburden removal and coal extraction at the Dhori Area in Jharkhand.
The contract adds meaningful long-term visibility to Sical’s mining business and is an important order to track for the company’s future revenue and operational performance.