Coal India pays $3.5 Billion Dividend to fund NREGA

Discussion in 'Politics & Society' started by afako, Jan 16, 2014.

  1. afako

    afako Regular Member

    Aug 18, 2010
    Likes Received:
    "The fundamentals (of Coal India) do not justify
    that kind of dividend and if the company does
    not know what to do with its cash, it's a really
    sorry state for the economy," Mr Holland said. Coal India, which accounts for 80 per cent of
    India's coal output, has missed production targets
    for several years and its growth hobbled by a
    lack of investments on modernization and
    delayed approvals of its mining projects. "The amount of coal produced in the country is
    just not enough. Coal India has failed to deliver
    on that year after year," Mr Holland added. Avinnash Gorakssakar of said the
    dividend will help the government more than the
    retail investors. The government's 90 per cent
    shareholding in the company will fetch it about
    $2.7 billion and will help the cash-starved
    government narrow its fiscal deficit.

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