India’s Cabinet has approved the sale of a further 10% stake in Coal India (CIL) for about US$ 3.9 billion, according to news reports. The Indian government currently holds an 89.7% stake in the coal mining company, which accounts for the vast majority of the country’s coal output.
The approval comes despite threats of strike action by coal miners should the government go ahead with the sale. Last year, similar tactics successfully prevented the previous government from selling a stake in the company.
India will need to import more coal over in coming years as the Supreme Court’s ruling that all coal mining licences awarded 1993 – 2010 are illegal throws the industry into chaos.