“The draft cabinet memorandum for the initial listing of 25% of the shares of …BCCL has been approved by the Minister of Coal,” said a source, adding that “the draft cabinet memorandum regarding BCCL has been sent for consultation at IMC.”
A query sent to a coal ministry official about the matter went unanswered until the story was filed.
CIL had announced last month that it planned to divest 25% of its unlisted subsidiary BCCL and would opt for the subsidiary’s subsequent listing on the stock exchange after obtaining new authorizations.
A meeting of the board of directors to this effect was held on March 10, 2022, CIL had indicated in a regulatory filing.
“As advised by the MoC (Ministry of Coal), CIL’s Board of Directors, at its 438th meeting held on March 10, 2022, had granted its ‘in principle’ approval to the disposal of 25% of the paid-up share capital of BCCL owned by CIL and its subsequent listing on the stock exchange and advised to forward the proposal to the Ministry of Coal for further clearances,” the filing had said.
Stating that the company’s board had only given “in principle” approval of the proposal, CIL said only after obtaining further government clearance would further action be taken. .
“Upon receipt of a new clearance from the MoC, the same would be conveyed to the CIL Board and the decision of the CIL Board would be promptly disseminated to exchanges,” the filing had said.
In FY21, against the target of 37.13 MT, BCCL achieved production of 24.66 million tonnes (MT). The company’s net revenue in FY21 was Rs 6,149.81 crore against the prior year revenue of Rs 8,967.56 crore. This significant drop in sales affected the company’s financial net income, according to BCCL’s annual report.
As a result, the company was unable to maintain profitability unlike previous years and suffered a net loss (LBT) of Rs 1,577.06 crore. Its PBT (profit before tax) stood at Rs 991.12 crore in 2019-20, according to the report.
Coal India accounts for over 80% of national coal production.
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. It is a public sector enterprise engaged in coal mining and related activities.