Govt clears 10% stake sale in CIL, may get Rs 23,000 cr

A planned stake sale in Coal India in 2013-14 had to be deferred after stiff opposition from the trade unions

The government today gave a go- ahead to the much-awaited 10% stake sale in Coal India Ltd, which could fetch over Rs 23,000 crore to the exchequer.

Sources said the Cabinet Committee on Economic Affairs (CCEA) has approved the disinvestment department's proposal to offload 10% stake through Offer For Sale (OFS) route.

At today's closing share price of Rs 373.85, a sale of 10% stake or 63.16 crore shares in CIL would fetch the government more than Rs 23,000 crore.

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.

A planned stake sale in CIL in 2013-14 had to be deferred after stiff opposition from the trade unions. The coal major had to make up for that by paying about Rs 19,000 crore as dividend to the exchequer.

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