Indian state-controlled coal mining firm Coal India (CIL) is set to proceed with its planned 10% divestment that is aimed at raising nearly INR200bn ($3.4bn), the Finance ministry stated.
Confirming the stake-sale, Indian Finance Minister P Chidambaram stated that CIL is on the list of the companies that the government is planning to divest the stakes in, according to PTI.
Coal Ministry is in talks with the unions that are holding protests, revealed Chidambaram, adding that the authorities can explain the decision.
Currently, Indian government owns 90% stake in Coal India.
Earlier in May 2013, an Inter-ministerial Group (IMG) gave its approval for the stake-sale as a part of government’s plan to raise INR400bn ($7.39bn) through public sector undertaking (PSU) during the fiscal 2013-2014.
However, Coal Ministry blocked the plans citing internal issues including strike threats from the workers that are against the divestment.
Chidambaram, meanwhile, noted that the proceeds from the divestment would be invested in the PSU and PSBs.
"If I disinvest in Coal India and if its raises Rs. 20,000 crore, the entire money will go into the public sector," said Chidambaram
"I am not using the money for current expenditure."