New Delhi: Coal India, after getting the
necessary approval from the coal ministry, has begun
discussions with the disinvestment department of the finance
ministry to divest up to 10 percent of government stake in
the company.
"We have had a very good discussion on setting a road map
for disinvestment in Coal India," Coal India Chairman P S
Bhattacharyya told a news agency.
Bhattacharya met the disinvestment secretary, Sunil
Mitra, on Wednesday to finalise the "5-10 percent" equity
dilution in Coal India.
The company has already received the coal ministry's nod
to reduce the face value of its shares to Rs 10 from Rs 1,000
at present.
"The coal ministry has given us its approval to lower the
face value of our shares from Rs 1,000 a share at present to
Rs 10 per share," Bhattacharya said.
The navratna firm's equity base thus would be expanded to
631.6 crore shares from the current 6.316 crore shares. The
company has a paid up equity capital of about Rs 6,300 crore.
Also, the coal ministry has approved the conversion of
the PSU from a "Private Limited" firm to a "Public Limited"
one.
It has approved increasing number of shareholders to
seven from the current six, a condition for any state-run
entity to become "Public Limited".
Coal India is registered as a "Private Limited" company
and will soon be a "Public Limited" firm with an small
amendment, Bhattacharya said. It is a pre-requisite for
disinvestment and coming out with a public offer.
Coal Minister Sriprakash Jaiswal had last month said he
would take up the dilution of government equity with the Prime
Minister after the monsoon session of Parliament. The session
ended on August 7.
The company aims to give a boost to its R&R policy by way
offering shares to the people whose land is acquired for
mining purposes. Besides this, Coal India will offer shares to
its employees. The remaining will be left for transaction on
the bourses.
To do all this, the coal ministry would have to introduce
a bill to amend the present Coal Mines Nationalisation Act,
paving way for the proposed disinvestment.
CIL has an estimated coal reserves of up to 100 billion
tonnes and over 80 percent market share in the country.
Coal India produced about 403 million tonnes of coal 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.
s
Coal India had a profit before tax of Rs 8,738.46 crore
in the last fiscal.
Bureau Report
First Published: Friday, August 14, 2009, 11:46