The government has decided to sell just 5 per cent of its stake in Coal India Ltd (CIL), half of the size it previously planned to offload, Coal Minister Sriprakash Jaiswal confirmed on Tuesday.

In May, the government was all set sell 10 per cent of its stake in the coal miner, but worker unions opposed the plan and issued warnings that they would go on an indefinite strike if the government went on with its stake sale plan. The severe opposition forced the government to postpone the plan.

After a series of discussions with the trade unions, the government decided to halve the size of the stake it wanted to offload in the coal giant.

Confirming the development, Coal Minister Jaiswal said, "On the advice of trade unions, the government has decided that instead of 10 percent, we will disinvest 5 per cent."

However, Jaiswal added that the government would also sell the remaining 5 per cent stake, through a different mechanism. He also claimed that all major trade unions were ready for that.

The government now holds 90 per cent stake in the coal miner. In 2010, the government raised $3.4 billion by offloading 10 per cent stake in CIL via an initial public offer.