Coal ministry mulls proposal to divest stake in CIL
Press Trust of India / New Delhi Jun 16, 2009, 16:50 IST
The Coal Ministry is working on a proposal to disinvest 5-10 per cent stake in navratna PSU Coal India Ltd, a move which may pave way for early listing of the country's largest producer of the dry fuel.
"We are working on a proposal to disinvest 5-10 per cent stake in Coal India. I have informed the Finance Minister about it but we have not given it in writing," Jaiswal told reporters here after holding a pre-budget meeting with Finance Minister Pranab Mukherjee.
The Coal Ministry is looking to give a boost to R&R policy of CIL, by way of offering shares to people whose land is acquired for mining purposes. The company's shares could also be offered to its employees.
"We are working on the disinvestment proposal and (looking at options) if we can give those shares to our (CIL) employees and land holders," he said.
For divesting its stake in Coal India, the Coal Ministry would have to introduce a bill to amend the Coal Mines Nationalisation Act. The divesting of government's equity in the coal major would lead to early listing of the entity.
The firm was given the navratna status in October 2008 and as per the rules, it has to get listed within three year ending October 2011.
The minister said that he has also sought reduction in customs duty on heavy machines used for mining purposes, without divulging any figures.
Coal India plans to acquire sophisticated mining equipment to boost its output. The company targets an output of 435 million tonnes of coal in the current fiscal.
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