Govt approves 10% stake sale in Coal India, eyes 20K cr

New Delhi: Government on Wednesday approved 10 percent stake sale in state-owned Coal India Ltd, a move that could fetch around Rs 20,000 crore to the exchequer.

Announcing the Cabinet decision, Coal and Power Minister Piysh Goyal said at a press briefing that government is expecting to mop up around Rs 20,000 crore from the sale of 10 percent stake CIL.

At current market capitalisation, based on CIL stock price, 10 percent stake sale could fetch about Rs 21,137.71 crore.

The government had earlier said that it may sell the stake in CIL in the current fiscal through a public offer. It holds 79.65 percent in the company.

The government has budgeted to raise Rs 69,500 crore through disinvestment in the current fiscal. Of this, Rs 41,000 crore is to come from minority stake sale in PSUs and the remaining Rs 28,500 crore from strategic stake sale.

For disinvestment in 2015?16, the government has a pipeline of over 20 PSUs for which it has the Cabinet approval. These include 10 percent stake sale each in OIL, Nalco, NMDC, and 5 percent each in NTPC, ONGC, BHEL.