Union Government to sell up to 10% stake in Coal India Limited (CIL)
Union government has announced to sell up to 10 per cent stake in state owned Coal India Limited (CIL) on 30 January 2015.
This decision was cleared by high-powered ministerial panel headed by Finance Minister Arun Jaitley.
It will help the government to raise revenue of 24,000 crore rupees at the current market price and meet the fiscal deficit.
Government is planning to divest 5 per cent stake in the company via share sale and the remaining 5 per cent through the green-shoe option.
Currently, the government holds 89.65 per cent stake in CIL. As per the minimum shareholding norms for listed companies, the government needs to lower its stake to 75 percent.
Coal India Limited (CIL)
- It is a state-controlled coal mining company, 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 90% of the shares in CIL and controls the operations of CIL through Ministry of Coal.
- In April 2011, CIL was conferred the Maharatna status by Government of India. It is India’s 5th most valuable company in terms of market value.
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Month: Current Affairs - January, 2015