India may spin off units of Coal India, the world’s largest coal miner, into separate listed companies to boost competition and raise government funds, according to people with knowledge of the matter.
The state-run company and the coal ministry are studying a proposal by the finance ministry’s Department of Investment & Public Asset Management to list four of Coal India’s biggest production units, as well as its exploration arm, said the people, who asked not to be named as the plan isn’t public. The development is in an early stage and it was unclear how long it may take, the people added.
Prime Minister Narendra Modi’s government has sought to sell some state assets to raise funds, and these divestments will continue to remain a priority, Finance Minister Nirmala Sitharaman said July 5, setting a record target of raising $15 billion in the current fiscal year.
Spinning off Coal India subsidiaries would also lead to greater competition in the domestic coal market and improve corporate governance, the people said. Read More