Coal India shares hit near 3 year high as Modi explores breakup

Shares of Coal India Ltd, the world's biggest coal miner, hit their highest level in nearly three years on Thursday after Reuters reported that Narendra Modi, who will become prime minister on Monday, was exploring breaking up the company and opening up the sector.

The stock was among the top gainers on the Nifty, rising as much as 8.22 percent in early trade to 401.40 rupees, the highest since August 2011.

Modi wants to fix India's inefficient coal sector quickly to improve electricity supply across the country. Coal generates more than half of the country's power and is the cheapest form of energy.

Sources said any reform will begin with Coal India, which accounts for 80 percent of India's total coal output but has failed to meet its output targets for years.

Red tape, strikes, protests against land acquisition and delays in obtaining environmental approvals have kept coal output far below demand, making India the world's No.3 importer even though it sits on the fifth-largest reserves.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • Swift action plan may combat adverse effects of bad monsoon

    The bad news is out.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Simon J Evenett

Is it the end game for Greece?

Five months after the election of a left-wing government on ...

Zehra Naqvi

Green peace is key to overall wellbeing

Why do people head for the hills to recharge and ...

Dharmendra Khandal

Social media is not always a blessing

There is, perhaps, a misconception that social media is a ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture