The Union government is analyzing a plan to raise as much as Rs 20,000 crore by trading a stake in the world’s largest coal producer. IDBI Bank to finance an incentive programme directed at building the virus-battered economy, officials with knowledge of the matter confirmed.
The scheme includes a share sale depending on the market opinion, as per some internal sources. However, if estimates are not attractive in the cause of Coal India, the corporation will buy back shares from the government.
The coronavirus pandemic has crashed Prime Minister Narendra Modi’s budget intentions. The rapid spread of the disease advised the government to increase spending on welfare programmes and improve the economy struggling from the ongoing lockdown.
In February, Narendra Modi had projected to raise as much as Rs 2.1 trillion trading state assets in an attempt to keep the budget deficit at 3.5 percent of gross domestic product(GDP).
Despite the economic cost, the spread of infection continues undefeated with India exceeding Russia to become the third worst-hit country with over 740,000 Covid-19 cases, putting further stress on economics.