The government today said the process of disinvestment in Coal India Ltd (CIL) would start soon and in the first phase it would be around 10 per cent.
Priority would be given to the employees of CIL and the farmers whose land had been acquired in allotment of shares and only the remaining portion would be sold in the market, said coal minister Sriprakash Jaiswal said.
Underground mining would be given priority, as production through it is better and also has no impact on the environment, he added.
Admitting there is a 25 per cent shortage of coal, Jaiswal said the target set for 100 days by the government has been completed by his ministry.
Earlier this month, the company had received the coal ministry’s approval to reduce the face value of its shares to Rs 10 from Rs 1,000 at present.
OIL’s IPO to open on September 7
The country’s second-largest state-run explorer, Oil India Ltd (OIL), will hit the capital market with its initial public offer (IPO) on September 7. The IPO would be open till September 10 and the price-band has been fixed between Rs 950 and Rs 1,050 an equity share. The company will offer 26.4 million equity shares to the public through the IPO.
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“We have laid down a capex of around Rs 4,500 crore for exploration, development, production and transportation of crude oil over the next two years,” OIL Chairman and Managing Director N M Borah said during a press conference in Mumbai.
The government will simultaneously sell 10 per cent of its stake in the company to other state-owned oil companies. Post-IPO and disinvestment, the government’s stake in the company will drop from 98.13 per cent to 78.5 per cent.
The IPO’s proceeds would be used to fund capex requirement for the next two financial years with an estimated expenditure of Rs 2,300 crore and Rs 2,400 crore respectively.