SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

CIL open to release Rs 15,000 cr from cash reserves

23 Nov 2011 Evaluate

Coal India Ltd (CIL) was open to utilisationof up to a fourth of its cash reserves, about Rs 15,000 crore, for purposesother than capital expenditure if asked by the government, its mainshareholder. The government wanted to know how much cash reserves the companyhas. The company has cash reserves of Rs 60,000 crore by March, 2012.  Of which the company has indicated to retainthree-fourths of it for its development and capex requirements. The government hadsought to ascertain the cash position of PSUs as part of efforts to explore allavailable options to raise money and reduce the fiscal deficit. In thisregard, it seems likely that the disinvestment target of Rs 40,000 crore for2011-12 will not be met due to sluggish capital market conditions. However, the Finance Ministry has asserted that it is weighing severaloptions to meet the PSU stake sale target despite uncertainty in the stockmarket. The government is considering various options, apart from thepublic offer route, to achieve the disinvestment target for the fiscal by wayof share buy-back, private placement of shares or asking cash-rich PSUs to buyequity in their peers. In this respect, CIL is willing to release up toRs 15,000 crore by March, which may be used for either a share buy-back or aspecial dividend. At present, CIL has close to Rs 49,000 crore of cashreserves.
<!--[if !supportLineBreakNewLine]-->
<!--[endif]-->

Coal India Share Price

438.70 5.80 (1.34%)
17-Apr-2026 16:59 View Price Chart
Peers
Company Name CMP
Coal India 438.70
NMDC 89.78
GMDC 733.40
Sandur Manganese 218.35
MOIL 327.60
View more..

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×