Centre clears disinvestment of 25% equity stake in Bharat Coking Coal Ltd

NEW DELHI:

The government has approved disinvestment of its 25 per cent equity stake in Bharat Coking Coal Limited (BCCL) and necessary formalities are underway to initiate the process.

BCCL is a subsidiary of the country's largest dry fuel producing company, Coal India Limited (CIL).

Highly-placed sources told IANS that a three-member empowered ministerial committee led by Finance Minister Nirmala Sitharaman and comprising Coal Minister Pralhad Joshi and Road Transport & Highways Minister Nitin Gadkari has cleared the proposal for divesting 25 per cent of BCCL's equity.

The ministerial committee had been vested with the power of approving the proposal of divesting 25 per cent equity stake in BCCL, the sources said.

The committee after approving the proposal had sent it to Coal India Limited's (CIL) board, which too has cleared it, they added.

It remains to be seen though whether disinvestment of BCCL's shares would be done through the strategic sale route or via the initial public offer (IPO) route.

As a part of its plan to restructure CIL, the government had last year decided for an initial listing of 25 per cent shares of BCCL.

CIL had in May 2022 said that it is planning to divest 25 per cent stake in its unlisted arm BCCL and go for the subsequent listing of the subsidiary on stock exchanges after obtaining further clearances.

A meeting of CIL's board was held to discuss the matter in March 2022, the coal behemoth had said in a regulatory filing.

Informing that the company's board had given only "in principle" approval to the proposal, CIL had said at that time that only after getting further clearance from the government, subsequent action would be initiated.

Sources, however, indicated that the decision on listing of BCCL is to be taken by CIL's management, as the empowered panel has okayed disinvestment of 25 per cent equity stake in the subsidiary now.

BCCL was incorporated in January 1972 to operate coking coal mines operating in the Jharia and Raniganj coalfields. It was taken over by the government on October 16, 1971.


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