OREANDA-NEWS. The sale of 10pc of the Indian state's stake in domestic coal producer Coal India (CIL) has been delayed again after the government extended the date for submitting bids.

The disinvestment department extended the bid date to 14 October, the second such extension after postponing it previously by three weeks to 23 September. The sale of the CIL stake may fetch as much as 200bn rupees ($3bn) based on previous valuations.

The government had first called for bids on 12 August to select five bankers to manage the sale process. The state owns 78.65pc of CIL. Delhi sold a 10pc stake in the company in January with state-owned insurance firm LIC picking up 4.5pc.

LIC has frequently come to the government's rescue with state asset sales when private-sector investors have shown minimal interest. It bought the majority of shares in the 10pc divestment of state-controlled refiner IOC last month, buying an 8.59pc stake and helping Delhi raise more than Rs90bn rupees.

The Indian government wants to raise Rs695bn rupees from sales of its stakes in state-controlled firms in the 2015-16 fiscal year ending 31 March, more than double estimated proceeds of Rs314bn in 2014-15. It has so far raised around Rs126bn during the current fiscal year.

CIL produces about 80pc of India's coal. It produced 192.37mn t of coal during April-August, the first five months of 2015-16, up by 9.4pc from the year-earlier period and equivalent to 98pc of the government's target of 196.73mn t.

Delhi has set CIL an output target of 550mn t for 2015-16, up by 11pc from 494mn t a year earlier. The firm increased its 2014-15 output by 32mn t or 7pc from the previous year, but fell short of its 505mn t production goal.