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The Government will divest a further 10 per cent stake in Coal India out of its current holding of 89.65 per cent, Minister of State (Independent Charge) Power, Coal and New and Renewable Energy Piyush Goyal informed Lok Sabha on Thursday.
However, Goyal did not give a timeline for the divestment. The stake sale could fetch the Government around ₹20,000 crore, going by CIL’s closing price on Thursday of ₹356.60 on the BSE.
The Government had set a disinvestment target of ₹63,000 crore in the Union Budget 2014-15, tabled in Parliament on July 11. Goyal added that the proceeds will be credited to the ‘Public Account’ under the head of National Investment Fund, as per the decision of the previous Government.
NIF utilises its funds for subscribing to shares issued by public sector banks, insurance companies and companies to ensure its holding of 51 per cent is not diluted. The fund’s money is also used to recapitalise public sector banks and insurance companies, equity infusion in various Metro projects, investment in Indian Railways, Bhartiya Nabhikiya Vidyut Nigam and Uranium Corporation of India.
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