DoD expects Rs 50,000 cr forex inflow for CIL IPO

The Union finance ministry expects flow of Rs 50,000 crore funds from foreign financial institutions (FIIs) for the Coal India IPO.

“We expect foreign exchange inflow of Rs 50,000 crore for the CIL IPO”, said Siddharth Pradhan, additional secretary, department of disinvestment, ministry of finance.

As on today, more than 3 billion dollars have come in through P notes for investment in the IPO.

All the major FIIs have evinced interest in the IPO which is largest the country’s corporate history.

Pradhan, who was in the US last week for an investors’ meet on CIL IPO and other PSU disinvestment proposals, said, the government is well on its way to achieve the disinvestment target of Rs 40,000 crore during the year.

This will be mainly raised through disinvestment in companies like Indian Oil Corporation (Rs 22,000 crore), Steel Authority of India ( Rs 4,000 crore), Power Grid Corporation (Rs 8,000 crore) and ONGC (Rs 10,000 crore).

The sell of shares of these companies will be taken up between now and March, 2011, he said and added that after CIL, the PGCIL will be the next to go to the market in November this year.

Meanwhile, the Bharatiya Mazdoor Sangh (BMS) affiliated workers’ union in the Talcher coalfields today went on strike in protest against the disinvestment of government shares in CIL paralyzing work in Jagannath and Hingula mines of MCL for few hours in the morning.

“Except this particular union, the rest trade unions are supporting the IPO”, said AK Singh director technical (P&P) of MCL. But for this hiccup in the two mines of Talcher coalfield, the work is normal in the rest mines of this coalfield and Ib valley under MCL and efforts are on to bring back normalcy in the affected mines, he added.