Coal India gains on plans to undertake restructuring

The government has invited expressions of interest (EoI) from for providing consultancy for restructuring of the company.

Coal India Limited (CIL) has moved higher by almost 3% at Rs 370 on reports that the government has invited expressions of interest (EoI) from for providing consultancy to undertake restructuring of the company.

“The idea is to spin-off CIL subsidiaries as independent entities to ramp up production through infusing competition,” the Business Standard report suggests.

CIL is the single largest coal producer in the world. Operating through 81 mining areas, the company is an apex body with 7 wholly-owned coal producing subsidiaries and 1 mine planning and consultancy Company spread over 8 provincial states of India.

The stock opened at Rs 361 and touched high of Rs 371 on the NSE. Total 2.12 million shares have changed hands on the counter till noon deals on both the exchanges.