CIL to again fund Centre via share buyback

The guidelines recommend payment of reasonable dividend at regular intervals

Coal India would again be generating cash for the central government, its principal shareholder, via the capital buyback guidelines issued last year.

In October last year, the monolith had extinguished 1.72 per cent of its shares after a buyback, estimated to have generated cash of Rs 2,500 crore for the Centre. The total cash given to the shareholders was Rs 3,650 crore. Now, to again raise money for its shareholders via interim dividend, Coal India is banking on its subsidiaries. “The buyback process is happening as per the Dipam (department of investment and public asset management) guidelines,” a Coal India