Lagatar24 Desk
New Delhi, May 26: Coal India Limited announced on Thursday that it plans to sell a 25% share in its unlisted subsidiary Bharat Coking Coal Ltd (BCCL) and then list the subsidiary on stock exchanges after securing additional permits.
Coal India Ltd (CIL) reported in a regulatory filing that a meeting of the board of directors to that effect was convened on March 10, 2022.
“As advised by MoC (Ministry of Coal), CIL Board in its 438th meeting held on March 10, 2022 had accorded its ‘in-principle’ approval to divest 25 per cent of paid-up share capital of BCCL held by CIL and its subsequent listing on stock exchanges and advised to forward the proposal to Ministry of Coal for obtaining further clearances,” the filing said.
CIL stated that the idea had only received “in principle” permission from the company’s board of directors, and that further action would be taken only after receiving further authorization from the government.
“On receipt of further clearance from MoC (Ministry of Coal) the same would be placed to CIL board and the decision of CIL board would be promptly disseminated to stock exchanges,” the filing said.
BCCL produced 24.66 million tonnes (MT) in FY21, versus a target of 37.13 MT, and off-take of 23.13 MT, versus a target of 37.13 MT.
The company’s net turnover in FY21 was Rs 6,149.81 crore, compared to Rs 8,967.56 crore the previous year. According to BCCL’s annual report, the large drop in sales had a negative impact on the company’s finances.
As a result, unlike previous years, the company was unable to retain profitability and reported a net loss (LBT) of Rs 1,577.06 crore. According to the report, the company’s PBT (profit before taxes) in 2019-20 was Rs 991.12 crore.
Coal India accounts for more than 80% of the country’s coal production.
BCCL was founded in January 1972 with the goal of operating coking coal mines in the Jharia and Raniganj coalfields. On October 16, 1971, the government took control. It is a government-owned company that engages in coal mining and related activities.
