Break-up Coal India into 7 firms: NITI Aayog

NITI Ayog in its latest suggestion to the government has  recommended that India should split the seven units of state controlled Coal India Ltd into independent companies. The National Institution for Transforming India (NITI)  aayog  is a government of India policy think-tank established by the current government to replace the Planning Commission.
 
According to the aayog about 70 per cent of India’s power generation is fired by coal and India is world’s third largest producer and at the same time third-biggest importer of coal. Objective is to boost local coal production.
 
To improve the local coal production fresh coal production should come from private sector mines and such a move will help in allocating coal blocks to independent companies that are specialised in coal mining.

Coal India has delivered negative 20.69 per cent returns over one year period and is down by nearly 18 per cent on YTD basis. Trading at Rs 245.45 the stock is up by 0.45 per cent on Wednesday.