Coal India Ltd.

The Cabinet Committee on Economic Affairs (CCEA) has approved the disinvestment department’s proposal to offload 10% stake in Coal India (CIL) through Offer for Sale (OFS) route. With the sale of the said stake, the government could fetch over Rs 23,000 crore to the exchequer.

This will make up for more than half of the total disinvestment target for the current fiscal 2014-15, during which the government plans to mop up Rs 43,425 crore from selling stake in PSUs.

The government, which holds 89.65% stake in CIL, initially sought to divest a 10% stake but lowered it to 5% on account of opposition from the unions.

Coal India is the world’s largest coal mining company. It also produces non-coking coal and coking coal of various grades for diverse applications.