COal Ministry gives nod for divestment in CIL

The Coal ministry is not averse to offloading stake in its navratna PSU Coal India Ltd, Coal Minister Sriprakash Jaiswal said on Monday.

“If need be, we are not averse to limited disinvestment in Coal India,” Jaiswal told PTI.
However, he added, the ministry has to introduce a bill to amend the present Act (Coal Mines Nationalisation Act) for divesting government’s stake in the entity.

The proposed disinvestment would pave way for an early listing of the India’s largest coal producer.

On the offloading of government’s shareholding in the firm and its listing on the bourses, Coal India Chairman P S Bhattacharyya had last week said the company has initiated talks with the ministry for an initial public offer.

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.

CIL, which has an authorised capital of Rs 8,000 crore, believes that “all its shareholders, including the government, could be benefited” by such a move.

Coal Minister Jaiswal is scheduled to meet the Finance Minister Pranab Mukherjee on Tuesday to present his ministry’s recommendations for the upcoming Budget.

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