Wednesday 11 June 2014

Govt nod for 10% stake sale in Coal India: Reports

The unions wanted the government to treat CIL as an infrastructure company and stop all initiatives to restructure it.

The new government has approved 10% stake sale in Coal India, according to a media report.
Indian National Mines Workers Federation were against stake sale in the coal miner or any of its subsidiaries.
Protests from the unions had forced the previous Dr Manmohan Singh government to cut by half its target to sell a 10% stake in the company.
The divestment plan was subsequently abandoned. The government holds nearly 90% in CIL. The unions had a list of 25 demands, eight of which got settled last time when the government declared its intention of divesting additional stake in the company. The unions wanted the government to treat CIL as an infrastructure company and stop all initiatives to restructure it.
Coal India is currently trading 1% down on BSE.
 

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