NEW DELHI (TIP): The government on Nov 18 approved 10 per cent stake sale in the state-owned Coal India. This is expected to garner Rs 20,000 crore as part of government’s aim to raise Rs 69,500 crore through minority stake sale in public sector companies.
The timing and price of the disinvestment will be decided by the finance ministry, Power Minister Piyush Goyal said after a Cabinet meeting chaired by Prime Minister Narendra Modi. The Government had sold 10 per cent stake in Coal India for more than Rs 25,000 crore in January this year. It owns close to 80 per cent share in Coal India at present. The government’s decision immediately won applause from India Inc with the CII saying it is a right signal that the government is fast-tracking reforms. The employees of Coal India, however, opposed the stake sale with one of the trade unions threatening to go on strike.
The government has raised Rs 12,700 crore or less than 20 per cent of its target but has lined up over 20 PSUs for divestment in the current fiscal. Important among them are Oil India, NDMC, Nalco, NTPC, ONGC and BHEL. The Union Cabinet also approved the proposal for issue of an Initial Public Offer of Cochin Shipyard.