CCEA approves 10% disinvestment in Coal India Ltd

Cabinet Committee on Economic Affairs (CCEA) has approved 10 per cent disinvestment in Coal India Limited (CIL).
Decision in this regard, was taken by CCEA meeting chaired by Prime Minister Narendra Modi in New Delhi. Presently, Union Government holds around 79.65 per cent stake in CIL.
It is the third disinvestment to be undertaken in CIL’s history and is expected to fetch around 21,000 crore rupees at current market capitalisation.
The disinvestment in CIL will be carried out through the offer for sale mechanism and the date and price of the stake sale is yet to be decided by the Union Finance Ministry.
It should be noted that the stake sale in CIL is part of Union Government’s disinvestment drive for financial year 2015-16 with target of 69,500 crore rupees. So far, Union Government raised around 12,600 crore rupees through regular disinvestment in FY 2015-16.

About Coal India Limited

CIL is an Indian state-controlled coal mining company. It is headquartered in Kolkata, West Bengal. It is the largest coal producer company in the world and contributes around 81% of the coal production in India.
Union Government of India owns around 80 per cent of the stake in CIL and controls its operations through Union Ministry of Coal.  In April 2011, CIL was conferred the Maharatna status by the Union Government. It is India’s 5th most valuable company in terms of market value.

Month: Current Affairs - November, 2015