Coal India gains as govt starts restructuring process

The Ministry of Coal made the announcement after trading hours on Tuesday, 8 January 2013.

Meanwhile, the BSE Sensex was up 53.09 points, or 0.27%, to 19,795.61.

On BSE, 1,492 shares were traded in the counter compared with average volume of 2.08 lakh shares over the past two weeks.

The stock hit a high of Rs 362.80 and a low of Rs 359.95 so far during the day.

The planning Commission and a number of high level committees have recommended restructuring of Coal India (CIL), a Maharatna Public Sector Undertaking, keeping in view the rapidly increasing demand for coal and the need for enhancing coal production and to make the coal industry competitive in the rapidly changing economic scenario, the coal ministry said.

Since establishment of CIL in 1975, there have been significant changes in the energy policy of the country particularly after the onset of economic liberalization in the early 1990s. The coal sector has been partially opened for private investment to captive consumption. Coal development policy has evolved over a period of time leading to doing away with the administrative price mechanism/decontrol of coal price and distribution, empowerment of performing public sector coal companies, etc, the coal ministry said.

Coal India's consolidated net profit rose 18.7% to Rs 3078.08 crore on 10.8% growth in net sales to Rs 14572.54 crore in Q2 September 2012 over Q2 September 2011.

Coal India 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.

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