Coal India Limited (CIL) will sell a 25% stake each in its unlisted subsidiaries Bharat Coking Coal (BCCL) and the consultancy subsidiary Central Mine Planning & Design Institute (CMPDI). The Central government is prodding central public sector enterprises (CPSEs) to privatise or disinvest stakes in their subsidiaries. The coal miner wholly-owned both the companies. While government officials said that CIL may list one of its profitable arms also, company sources said it is not on the immediate plan. A CIL official told the media that the CIL board has given an in-principle clearance for a 25% stake sale in BCCL and CMPDI, subject to government approval. Recently, the CIL board decided after the coal ministry urged the company to undertake stake sales as part of the efforts to rationalise capital deployment. CIL will designate merchant bankers and invite expression of interest for the stake sales soon after obtaining the nod from the government. In FY21, The BCCL posted a net loss of Rs 1,209 crore as compared with a net profit of Rs 919 crore in FY20 as it could only achieve 24.66 mt productions against the target of 37.13 mt and off-take of 23.13 mt against the 37.13 mt targets. During the financial year, the net turnover of the company dropped 21% to Rs 6,150 crore against the last year's turnover of Rs 8,967.56 crore. On the other hand, CMPDI attained its highest-ever turnover of Rs 1,489 crore in FY21, with its net profit increasing 64% on year to Rs 317 crore in FY21. On May 18, the Centre empowered the CPSE boards to privatise, disinvest or close their arms and sell stakes in joint ventures (JV). The move will curtail the clearance process as such proposals will not be routed via Cabinet and the relevant CPSE is just required to get an in-principle nod from a group of ministers before starting the transaction on their own instead of depending on the department of investment and public asset management (Dipam). Image Source Also read: Coal India plans to auction 20 closed mines in next few weeks