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| Coal India to go 'Public Ltd' before divestment |
| Press Trust of India / New Delhi Jun 30, 2009, 16:10 IST |
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Paving way for its disinvestment, the country's largest coal miner, Coal India, will soon become a "Public Ltd" company from a private one at present.
"For disinvestment and coming out with public offer, the pre-requisite is to become a public limited company. We will adopt a resolution in a month or two to become a public Ltd company from private Ltd at present," Coal India Chairman P S Bhattacharyya said over phone from Kolkata.
The government is considering to sell up to 10 per cent of its stake in its navratna PSU Coal India (CIL), and is likely to start the disinvestment process in the next six months.
The proposed disinvestment would pave way for an early listing of the India's largest coal producer.
The firm, which has a paid-up equity of Rs 6,300 crore, was given the navratna status in October 2008 and as per the rules, it has to get listed within three years ending October 2011. But the firm may come out with an IPO by the next fiscal considering the market conditions.
The coal major looks to give a boost to its R&R policy by way of offering shares to the people from whom it acquires land for mining . It also aims to offer shares to its employees.
Formed in 1975, with seven subsidiaries, Coal India is one of the largest state-run entities in India. It has an estimated coal reserves of up to 100 billion tonnes and has over 80 per cent market share in the country.
Coal India produced about 403 million tonnes of coal in the last fiscal. The company has a capital expenditure plan of Rs 3,200 crore for this fiscal and aims to increase production by 7.5 per cent to 435 million tonnes by the end of the current financial year.
Coal India had a profit before tax of Rs 8,738.46 crore in the last fiscal.
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