NEW DELHI: Coal India Limited (CIL), India’s largest coal producer, on Thursday said it is planning to divest 25% stake in its unlisted arm Bharat Coking Coal Ltd (BCCL). The company said once it gets clearance from the government on this proposal, it will go for the subsequent listing of the subsidiary on stock exchanges.
“As advised by MoC (Ministry of Coal), CIL Board in its 438th meeting held on March 10, 2022, had accorded its ‘in-principle’ approval to divest 25% of paid-up share capital of BCCL held by CIL and its subsequent listing on stock exchanges and advised to forward the proposal to Ministry of Coal for obtaining further clearances,” Coal India said in an exchange filing.
The company further said once it receives further clearance from the MoC (Ministry of Coal) the proposal would be placed to the Coal India board and the decision of the board would be promptly disseminated to the exchange. BCCL is a public sector undertaking, which was incorporated in January 1972 to operate coking coal mines operating in the Jharia and Raniganj Coalfields.
In this fiscal (FY2021-22), the company reported production of 24.66 million tonnes, as compared to the target of 37.13 million tonnes and off-take of 23.13 million tonnes as compared to the target of 37.13 million tonnes. Similarly, the net turnover of the company during FY’21 was Rs 6,149.81 crore as compared to the previous year's turnover of Rs 8,967.56 crore.
Coal India accounts for over 80% of domestic coal output. The company witnessed a 46% growth in its consolidated net profit to Rs 6,693 crore in the fourth ended 31 March 2022.CIL’s production was 622.63 million tonnes in the financial year 2021-22, up from 596.22 million tonnes in the previous financial year.