New Delhi, Sep 11 (IANS) The Cabinet Committee on Economic Affairs (CCEA) Wednesday approved the disinvestment of 10 percent paid-up equity capital in state miner Coal India out of the government shareholding of 89.65 percent.

“The decision to disinvest would help the government realise an optimum price for the offer for sale of 10 percent of the its shareholding in the company,” a CCEA release said.

The 10 percent disinvestment in Coal India is expected to fetch about Rs.23,000 crore.

Coal India is a public sector enterprise under the administrative control of the coal ministry.

Its objective is to produce and market the planned quantity of coal and coal products efficiently and economically, with due regard to conservation of resources, and safety and quality of life of the workforce.

The authorised capital of Coal India is Rs.8904.18 crore, of which the issued and subscribed equity capital as on March 31, is Rs.6316.36 crore.

After the disinvestment, the government’s holding in the company would come down to 79.65 percent.

The world’s largest coal miner, which has set a production target of 507 million tonnes (MT) for 2014-15, is hoping to increase its annual production by 10-20 MT this fiscal, Coal India chairman A.K. Dubey told media persons Wednesday on the sidelines of the company’s 40th annual general meeting in Kolkata.

Coal India, which accounts for 80 percent of domestic coal production, missed its output target of 482 MT for 2013-14, producing 462 MT during the period.

In 2012-13, the company produced 452.5 MT of coal, falling short of the 464 MT target.