New Delhi: World’s largest coal producer Coal India Ltd on Saturday said the board of its arm Northern Coalfields Ltd (NCL) has approved a share buyback plan worth Rs1,244 crore.

“Board of Directors of Northern Coalfields Limited (NCL), our wholly-owned subsidiary ... has considered and approved the buyback of 76,356 fully paid equity shares of face value of 1,000 each from the members of NCL on a proportionate basis through tender offer," Coal India said in a Bombay Stock Exchange (BSE) filing on Saturday.

The maximum buyback size is ,244 crore, it said, adding the equity shares proposed to be bought back by NCL represent 4.29% of the existing paid up capital of the firm. The equity shares are proposed to be bought back “for an aggregate amount not exceeding 1,244 crore (maximum buyback size being up to 25 per cent of the paid-up equity share capital", the filing said.

Coal India accounts for over 80% of the country’s domestic production.