The coal ministry has tabled a draft cabinet note to seek inter-ministerial comments on the proposed listing of a 25% stake in Bharat Coking Coal Ltd (BCCL), a unit of Coal India Ltd (CIL).
As part of CIL’s restructuring, the government has decided to list a 25% stake in Bharat Coking Coal Ltd (BCCL) for the first time.
“The draft cabinet statement on the initial listing of 25 per cent of BCCL has been approved by the coal minister,” a source said, adding that “the draft cabinet statement on BCCL has been sent to IMC for consultation.”
The same questions to coal ministry officials remained unanswered before the report was submitted.
CIL had said last month that it planned to divest a 25% stake in its unlisted subsidiary BCCL and, subject to further approvals, would list it on the stock exchange.
The CIL said in a regulatory filing that the board meeting will be held on March 10, 2022.
“On the recommendation of the MoC (Ministry of Coal), the CIL Board at its 438th meeting on March 10, 2022 has approved the divestiture of CIL and its 25% paid-up share capital in BCCL. The exchange is listed and it is recommended that the proposal be forwarded to the Ministry of Coal for further clearance,” the filing said.
CIL said the company’s board had only approved the proposal “in principle” and said follow-up would only be initiated after further government approval.
“Subsequent to receiving further approval from the Ministry of Transport, the same will be referred to the CIL Board of Directors, whose decision will be promptly communicated to the stock exchange,” the document said.
In FY21, BCCL achieved production of 24.66 million tonnes compared to the target of 37.13 million tonnes. The company’s net turnover in FY21 was Rs 6,149.81 crore compared to the previous year’s turnover of Rs 8,967.56 crore. According to BCCL’s annual report, the sharp drop in sales hit the bottom line of the company’s financials.
As a result, the company was unable to maintain profitability as in previous years and incurred a net loss (LBT) of Rs 1,577.06 crore. Its pre-tax profit for 2019-20 stood at Rs 991.12 crore, the report said.
Coal India accounts for more than 80% of domestic coal production.
BCCL was established in January 1972 to operate coking coal mines in the Jharia and Raniganj coal fields. It was taken over by the government on October 16, 1971. It is a public sector enterprise engaged in coal mining and related activities.
(Apart from the title, this story was unedited by NDTV staff and was posted from a syndicated feed.)