PM Narendra Modi’s administration is planning to offload a stake in state-run Coal India Ltd. to speed asset sales after a disastrous attempt to find a buyer for the cash-strapped national airline, people with knowledge of the matter said.
The Department of Investment and Public Asset Management is finalising the amount of stake to be offered in the financial year ending on March 31, the people said, asking not to be identified as the information is not public. If needed, the government could explore the option of staggering the sale offer in two tranches, they said.
Modi’s plan to raise about $12 billion in the current year from asset sales is at risk after a high-profile plan to sell Air India ground to a halt as no prospective suitors emerged. Coal India, the world’s biggest miner of the fuel, has reported strong shipment numbers in recent months due to demand from power plants.
The government holds more than 78 percent in Coal India. It had previously sold a 10 percent stake in 2015, mopping up 225.5 billion rupees.