To Shed Baggage, Government To Offload Stake In Profitable Coal India Coal Bhawan in Kolkata. (Indranil Bhoumik/Mint via Getty Image)

In line with its objective of divesting its stake in profitable PSUs (Public Sector Units) to sustainable levels, the government will sell nine per cent of its stake in Coal India Ltd. (CIL), reports The Economic Times. This state-run Maharatna company is the world’s largest coal producer.

If sold at the floor price, this stake sale is expected to fetch the government about Rs 14,000 crore. The floor price currently stands around Rs 266 a share, which is at a 3.6 per cent discount to Tuesday’s (30 October) closing price.

Other media reports had earlier reported that the government was planning to offload only three per cent of CIL, about 186.2 million shares. The government’s current stake in the miner stands at 78.32 per cent.

The NDA government led by PM Modi has made great strides to improve the efficiency of PSUs since coming to power. Unlike previous regimes, the government overachieved its divestment objectives and raised a record Rs 91,253 crore as against a target of Rs 72,500 crore in FY18. Finance Minister Arun Jaitley has set the divestment target for FY 19 at Rs 80,000 crore.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement