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.
Coal India could contribute at least 9% to the government’s Rs 1,05,000 crore revised divestment receipt target if it has to adhere to the revised proposal for minimum public shareholding of 35% for a listed company.
Any further Offer For Sale (OFS) in Coal India to raise funds is currently not on the radar and will be decided later, depending on the market, sources said. “Coal India has met the MPS (minimum public shareholding) target
State-owned Coal India (CIL) has supplied 491.54 million tonnes (MT) coal to power plants in across the country in 2018-19, Parliament was informed Monday.
In its quest for coking coal assets, government-owned Coal India Ltd is looking at acquiring a mine in Australia and will soon appoint a merchant banker to handle the transaction. The PSU board, which will meet here on June 19, will finalise the terms of the Notice Inviting Tender (NIT).
Coal India Ltd (CIL) is envisaging an 8.5 per cent growth in production at around 660 million tonnes (mt) in 2019-20, as per its MoU with the Coal Ministry. However, it might well be an uphill task for the state-owned miner as it has recorded a near flat growth in the first two months of this fiscal.
Coal India recorded a 44 per cent rise in 2018-19 e-auction prices, up from 20 per cent a year ago, thanks to a spurt in demand and higher international rates.
Coal India (CIL) on Sunday said its production declined by 1.1 per cent to 46.59 million tonnes in May of the current financial year compared with 47.12 million tonnes in the year-ago month.
Coal India will offer 60-70 million tonnes (MT) of coal in spot and forward auction markets this year. Despite being a little lower than last year’s offerings, premiums on auctions are expected to remain soft as the company has decided to increase contracted supplies and international coal prices have started to soften.
The Central Electricity Regulatory Commission (CERC) has allowed power companies to claim compensation for the additional cost of coal procured from alternative sources due to Coal India’s failure to meet supply obligations.