Coal India top gainer on Sensex, rises 2%

Coal India (CIL), the largest coal mining company in India, rose nearly 2 percent on Tuesday. The government may shortlist the applications early next month that it has received from firms such as McKinsey and KPMG to appoint advisors to restructure the company, the news agency said quoting sources.

The ministry had in January invited bids for appointment of advisors to restructure of the country's largest coal producer.
 
The Planning Commission and many high-level panels, including expert committee on road map for the coal sector reforms - also known as T L Shankar Committee - recommended restructuring of CIL keeping in view of rapidly increasing demand of coal and the need for enhancing production as well as to make the coal sector competitive.
 
The Planning Commission had earlier suggested spinning off CIL subsidiaries into separate entities so that each one of them can pursue its own goals, amid growing supply deficit of coal.
 
World's largest coal miner CIL has seven subsidiaries such as Bharat Coking Coal (BCCL), Central Coalfields (CCL), Eastern Coalfields (ECL) and Central Mine Planning and Design Institute.
 
The board of directors of the company yesterday approved to convert the loan & current account balance granted to BCCL (100 percent subsidiary) aggregating to Rs 2,539 crore into 5 percent non-convertible, redeemable cumulative preference shares.

At 12:11 hours IST, shares moved up 1.76 percent to Rs 302.80 on Bombay Stock Exchange.

(With inputs from PTI)