Whalesbook
Central Mine Planning & Design Institute Ltd (CMPDI), a subsidiary of Coal India, has reported strong operational achievements for fiscal year 2025-26. The company surpassed its drilling target by 5%, completing 11.51 lakh metres against a goal of 11.00 lakh metres. Seismic surveys also exceeded expectations, reaching 455.228 Line Km compared to a target of 450.00 Line Km.
This operational success comes as CMPDI has secured a Letter of Intent for the Nawatala Devigarh Rare Earth Elements (REE) block in Rajasthan. The company plans an initial investment of ₹5.43 crore in FY27 for exploration at this new block, with an estimated total exploration expenditure of ₹24.88 crore foreseen for its development.
These achievements highlight CMPDI's efficiency in core exploration services and mark a significant diversification step beyond its traditional coal and lignite focus. The acquisition aligns with India's national drive for self-reliance in critical minerals, which are essential for high-tech industries, clean energy, and defense applications.
Further cementing its future project pipeline, CMPDI has finalized a new five-year Memorandum of Understanding (MoU) with Mineral Exploration Corporation Limited (MECL). This agreement, effective from April 1, 2026, to March 31, 2031, ensures continued collaboration on energy and non-energy mineral exploration. CMPDI, a Mini Ratna (Category I) company, has a long-standing history with MECL, working together on numerous drilling projects to expedite exploration efforts.
For shareholders, this expanding role in critical mineral exploration, particularly REEs, offers diversified revenue potential. The five-year MoU with MECL provides a stable platform for ongoing activities.
However, realizing revenue from the Nawatala Devigarh REE block is contingent on the terms set by the Ministry of Mines during the mining lease auction process. The estimated ₹24.88 crore exploration expenditure also represents a substantial financial commitment for CMPDI.
In the fiscal year 2025, CMPDI reported a revenue of ₹2,103 crore and a profit after tax of ₹667 crore.
Looking ahead, key developments to monitor include the progress and finalization of the Mining Lease for the Nawatala Devigarh REE block, the execution and outcomes of the renewed five-year collaboration under the MoU with MECL, and the deployment of the initial ₹5.43 crore capital expenditure for REE exploration. Any further diversification efforts into other critical minerals by CMPDI will also be watched closely.