Coal India to divest 25 per cent stake in BCCL

Coal India Limited (CIL) is planning to divest 25 per cent stake in its unlisted arm Bharat Coking Coal Limited (BCCL) and will go for the subsequent listing of the subsidiary on stock exchanges after obtaining further clearances.

The company’s board had given in principle approval to the proposal, and only after getting further clearance from the government, subsequent action would be initiated.During 2020-21, BCCL achieved a production of 24.66 million tonnes (mt), against the target of 37.13 mt and off-take of 23.13 mt against the target of 37.13 mt. The net turnover of the company during 2020-21 was Rs 61.50 billion against the previous year turnover of Rs 89.68 billion. This significant decline in sales affected the bottom line of the company’s finances. As a result of which, the company could not maintain its profitability unlike previous years and incurred a net loss of Rs 15.77 billion in 2020-21. Its profit before tax stood at Rs 9.91 billion in 2019-20.

GET ACCESS TO OUR ARTICLES

Enter your email address