Centre planning to raise at least Rs 10 bn via Coal India share buyback

The decision of the government may also have been influenced by the dividend payout from Coal India this year

The Centre is considering a share buyback proposal for Coal India whereby it plans to raise at least Rs 10 billion as part of its disinvestment target from various public sector enterprises for the current fiscal year.

Sources aware of this development said that although a share buyback proposal was initially mooted, it was put in the backburner after the company, as well as the government, felt it would be better to opt for a stake sale to investors in the open market. However, Coal India’s shares failed to breach Rs 300 mark prompting the coal ministry to fall back