The company has secured the approval from an Inter-ministerial Group (IMG) for the sale. However, the mode of sale is yet to be decided, with group mulling over Offer For Sale (OFS) or buyback taking options.

An official familiar with the developments was quoted by The Economic Times stating that IMG has given its nod following a meeting to outline the process.

The Department of Divestment (DoD) is planning to undertake Offer for Sale (OFS) and buyback to offload the stake, the source revealed.

The IMG headed by Disinvestment Secretary Ravi Mathur is extepected to lead the stake disinvestment process. The federal government currently owns 90% in Coal India.

The sale is said to be in line with government’s plan to raise INR400bn ($7.39bn) through public sector undertaking (PSU) during the fiscal 2013-2014.

The merchant bankers and legal advisers to facilitate the sale of stake are to be selected during the next meeting, the official added.