Coal India declares dividend of Rs 18,317 crore, Centre to get Rs 16,485 crore

Coal India's announcement of interim dividend could be first on the list of blue-chip public sector firms paying special dividends and many more PSUs like ONGC, GAIL, NTPC, SAIL and NMDC may make their respective announcements soon.

Moreover, the government is also working to sell its residual stakes in several private firms, including Hindustan Zinc, Balco and Axis Bank, to meet the disinvestment target.

The government has so far collected about Rs 3,000 crore through disinvestment in MMTC, Hindustan Copper, Neyveli Lignite and National Fertisers.

The Finance Ministry, seeking to meet its disinvestment target of Rs 40,000 crore for current financial year, wanted Coal India Ltd (CIL) to dole out a special dividend if the government's stake sale did not take place.

"If CIL does not go for divestment, then they have to provide us a special dividend," Economic Affairs Secretary Arvind Mayaram had said.

Asked whether this dividend meant stake sale has been scrapped, Rao said: "Who am I to speak on stake sale?"

CIL had originally planned to divest 10 percent in CIL and lowered it to 5 percent, or 31.58 crore shares, on account of the stiff opposition.

At the current market price, a 5 percent government stake sale in Coal India could fetch about Rs 9,150 crore.