Cabinet approves sale of 10% stake in Coal India, seeks $3 billion

Cabinet approves sale of 10% stake in Coal India, seeks $3 billionCoal India Limiteden.wikipedia.org

The cabinet has cleared the sale of another 10% stake in state-run Coal India Ltd that could raise as much as $3 billion, a minister said on Wednesday, as the government seeks more funds to spend on infrastructure.

Bankers have already put in bids to manage a similar stake sale in the company as part of New Delhi’s aim to raise more than $10 billion by March by selling minority stakes in state firms. The government owns about 79% of the world’s largest coal miner.

India has raised just about $2 billion or less than 20% of its divestment target so far this year.

The timing of the latest Coal India stake sale will be decided by the finance ministry, Power and Coal Minister Piyush Goyal told reporters after a meeting chaired by Prime Minister Narendra Modi.

The divestment could raise as much as Rs 200 billion ($3.02 billion), he said.

Goyal also said India would launch an initial public offering of Cochin Shipyard Ltd, which runs a yard that can build and repair big vessels.

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