Coal ministry issues draft cabinet note for listing 25% shares of CIL arm

New Delhi

The coal ministry has floated a draft cabinet note for seeking inter-ministerial views on the proposal to list 25% shares of Coal India arm BCCL.

As a part of Coal India (CIL) restructuring, the government has decided for an initial listing of 25% shares of Bharat Coking Coal Ltd. (BCCL).

“Draft cabinet note for initial listing of 25% of shares of... BCCL has been approved by the Minister of Coal,” a source said, adding that “the draft cabinet note in respect of BCCL has been sent for IMC consultation.” A query sent to a Coal Ministry official on the same, remained unanswered till the filing of the story.

CIL had said last month that it was planning to divest 25% stake in its unlisted arm BCCL and will go for the subsequent listing of the subsidiary on stock exchanges after obtaining further clearances.

A meeting of the board of directors to this effect was held on March 10, 2022, CIL had said in a regulatory filing.

“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,” the filing had said.

Stating that the company’s board had given only ‘in principle’ approval to the proposal, CIL said that only after getting further clearance from the government, subsequent action would be initiated.