Coal India stock rises 4% on plan to offer closed mines to private sector

Shares of state-owned Coal India rose 4 per cent in early trade today after the coal ministry said it was considering offering more than 100 closed, discontinued mines to the private sector on a revenue sharing basis in due course of time.

The move will add to the income of the coal sector behemoth and fulfil ever-growing demand for fuel in the Indian economy.

Coal India stock touched an intra day high of Rs 156.45, rising 4.33 per cent on BSE. Coal India is trading higher than 200 day moving averages but lower than 5 day, 20 day, 50 day and 100 day moving averages.

The share has lost 0.26 per cent in one year but gained 6.78 per cent since the beginning of this year. Market cap of the firm rose to Rs 96,569 crore on BSE.

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The stock has gained after four days of consecutive fall. Total 1.45 lakh shares of the firm changed hands amounting to a turnover of Rs 2.25 crore on BSE.

The ministry is hopeful that the collaboration with the private sector will enhance productivity and lead to production of additional dry fuel required for the development of the country, it said.

"The Ministry of Coal held a stakeholder consultation on revenue sharing model for discontinued/closed mines of CIL here today with the private sector," the statement said on Thursday.

The consultation attracted huge participation from the private sector like Essel Mining, Adani, TATA, JSW and JSPL and their enthusiastic support to the proposal. There are many mines which were discontinued/closed in the past by CIL due to several reasons and these could be reopened and productively brought into operation with the partnership of the private sector.