The privatisation of a 10% stake in Coal India Ltd (CIL), one of the largest coal mining companies worldwide, is pending to the resolution of its Rs 9,000 crore (US$1.6bn) dues owed by power utilities. The Indian Ministry of Coal has asked Power Ministry to ensure steps for payment of dues, including Rs 3,000 crore (US$540m) owed by NTPC to CIL; the power producer stopped paying for coal, claiming that the quality of the supplied coal was inferior. The Indian government aims to raise Rs 17,000 crore (US$3bn) by selling this 10% stake in CIL.
Meanwhile, the Indian government is considering selling a 10% stake in the Tehri Hydro Development Company (THDC), to raise Rs 5bn (US$91m). THDC is a hydropower company set up in 1988 as a joint venture between Government of India and Uttar Pradesh state, with an installed capacity of 1.4 GW and three projects of 1.5 GW under construction. The government’s stake would come down to 65% after the divestment.
Interested in Global Energy Research?
Enerdata's premium online information service provides up-to-date market reports on 110+ countries. The reports include valuable market data and analysis as well as a daily newsfeed, curated by our energy analysts, on the oil, gas, coal and power markets.
This user-friendly tool gives you the essentials about the domestic markets of your concern, including market structure, organisation, actors, projects and business perspectives.