BlackRock to exit Coal India by mid 2020

Kolkata: BlackRock, the world’s largest money manager with $7 trillion under management, will cut its equity in Coal IndiaNSE 1.86 % Ltd to zero by the middle of the year, becoming the latest in the list of 100 major banks and insurers exiting the thermal coal sector. It held around 0.35% stake in Coal India in August last year, which has already been reduced to less than 0.05% over the last few months.

BlackRock will exit all companies that earn more than 25% of revenues from coal-related businesses like power plants. The move comes at a time when the Centre is opening up the sector to attract foreign direct investment. “BlackRock started to steadily reduce its stake in Coal India months before it decided to exit the sector. It currently holds less than 0.05% in the company. This too they are likely to divest in the next few months following their announcement,” a senior Coal India executive said.