The Government of India is aiming to sell a 10 percent stake valued at around $3.7 billion in top coal miner Coal India Ltd through a stock market auction. The government, which owns 78.65 percent of Coal India, has sought bids from banks by September to manage the share offering. Five banks will be selected for the offering.
The central government is planning to raise as much as $11 billion by selling stakes in state-run companies this fiscal year in order to narrow the fiscal deficit to a planned 3.9 percent of gross domestic product in 2015/16. The government has missed its divestment target for the last five years in a row.
In July 2015, the government raised about $260 million from the sale of a 5 percent stake in Power Finance Corp Ltd.
Coal India Limited
- Coal India Limited (CIL) is an Indian state-controlled coal mining company headquartered in Kolkata, West Bengal, India.
- It is the largest coal producer company in the world and contributes around 81% of the coal production in India.
- In April 2011, CIL was conferred the Maharatna status by the Union Government of India.
Test Your Knowledge
Who is the current Chairman of Coal India Limited?
Who is the current Union Minister of Power, Coal, New & Renewable Energy?
