GET Stock QuotesNews18 APP
News18 English
cricketnext
»
1-min read

Senior Govt Officials Propose Break-up of Coal India

Senior Indian government officials tasked by the Prime Minister with reviewing energy security are recommending the break-up of the country's coal monopoly, Coal India Ltd, within a year.

Reuters

Updated:December 1, 2016, 5:02 PM IST
facebookTwittergoogleskypewhatsapp
Senior Govt Officials Propose Break-up of Coal India
A worker unloads coal from a truck inside a coal yard at Saroda village in Gujarat. (File Photo/Reuters) Representative image

New Delhi: Senior Indian government officials tasked by the Prime Minister with reviewing energy security are recommending the break-up of the country's coal monopoly, Coal India Ltd, within a year.

In a presentation seen by Reuters, they say Coal India — the world's largest coal miner — would be more competitive and efficient if it was divided into seven companies.

The proposal, dated November 30, is expected to be presented to Prime Minister Narendra Modi soon, three government officials with direct knowledge of the situation said. They declined to be identified because the information has not been publicly released.

It is unclear whether the proposal will lead to the breakup of Coal India, which has a stock market capitalisation of $28 billion.

Calls to a Coal India spokesman went unanswered.

A source close to power and coal minister, Piyush Goyal, said the ministry would review its stand on Coal India depending on what the prime minister says.

Coal India enjoys a monopoly but critics say it is bloated and inefficient. Its output-per-man shift is estimated at one-eighth of Peabody Energy, the world's largest private coal producer that filed for bankruptcy protection this year.

Modi had been exploring a breakup of Coal India even before taking office, Reuters reported in 2014, but the government put the idea on the back burner following protests by powerful worker unions.

A new proposal to break up the monopoly is likely to be met again with strong resistance from unions.

In late October, Modi set up 10 groups of senior bureaucrats to "undertake a critical review of the work done by the union government in the respective sectors that they will be studying".

The proposal to break up Coal India comes from one of these groups - nine top bureaucrats, including from the ministries of coal, power, oil and mines. They were asked to come up with policy proposals to promote energy security and the environment.

Read full article
Next Story
facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Reliance 909.90 -4.60 -0.50
Dewan Housing 594.35 -8.15 -1.35
GNFC 472.60 +28.85 +6.50
Axis Bank 460.30 -4.20 -0.90
Bharti Airtel 473.75 +11.80 +2.55
Company Price Change %Gain
GNFC 472.30 +28.60 +6.45
Reliance 910.35 -3.40 -0.37
Axis Bank 460.35 -4.00 -0.86
Dewan Housing 595.40 -6.40 -1.06
Aditya Birla 183.70 +3.35 +1.86
Top Gainers
Company Price Change %Gain
Bharti Airtel 473.75 +11.80 +2.55
UPL 793.70 +4.35 +0.55
M&M 1,375.75 +5.20 +0.38
Infosys 926.95 +2.60 +0.28
Lupin 1,051.20 +2.00 +0.19
Company Price Change %Gain
Bharti Airtel 471.05 +9.50 +2.06
Lupin 1,052.50 +3.60 +0.34
Infosys 927.10 +2.65 +0.29
M&M 1,374.80 +3.50 +0.26
BHEL 84.80 +0.10 +0.12
Top Losers
Company Price Change %Gain
ICICI Bank 257.85 -5.30 -2.01
NTPC 175.05 -3.00 -1.68
Kotak Mahindra 1,077.75 -18.15 -1.66
Coal India 285.80 -4.20 -1.45
Tata Motors 426.95 -6.25 -1.44
Company Price Change %Gain
ICICI Bank 257.85 -5.20 -1.98
Kotak Mahindra 1,079.35 -18.05 -1.64
NTPC 175.15 -2.85 -1.60
Tata Motors 427.25 -6.30 -1.45
Coal India 286.20 -4.00 -1.38

Live TV