CIL likely to raise over Rs 12,000 crore
Union Coal Minister Sriprakash Jaiswal today said Coal India Limited (CIL) would launch roadshows in India and abroad next month for the company’s Initial Public Offer (IPO) in October 2010.
Teams of CIL officials have been formed to organise these events and create a buzz around the IPO, which is likely to mop up over Rs 12,000 crore by divesting the central government’s equity by 10 per cent.
“In foreign countries, the road shows would primarily be held in USA, Australia, South Africa, Hong Kong and Singapore,” he stated at a conference call here.
Of the 10 per cent divestment in IPO, one per cent would be reserved for the employees and land users, who would be additionally given five per cent discount on share price.
“We are confident the IPO would be a success, as the CIL is on course to becoming a ‘maharatna’ entity, and it has fixed deposits of nearly Rs 32,000 crore,” he added.
Jaiswal said coal was an important energy source for the country and accounted for 55 per cent of the total energy consumed.
Noting that efforts were on to produce more coal for the rising energy demand, he said the government had decided to allocate coal blocks only to serious players.
“The Parliament has passed the Mines and Minerals Development and Regulation (MMDR) Act for ushering in transparency in the allocation of coal blocks by bidding process. It now awaits the presidential consent,” he added.
Between 1996 and 2008, the Centre had allocated 208 coal blocks in the country to public and private parties, however, only 26 blocks could become productive.
“We have formed a committee for identifying those, who have been deliberately delaying productivity of the allocated blocks. So far, eight blocks have been dis-allocated and more such action will be taken in future,” he warned.
Due to the bidding process, only genuine players will participate in the allocation process, since their equity will also be involved.
Commenting on the Uttar Pradesh government’s demand for more coal blocks, Jaiswal said UP had been given two coal blocks in the last four years, which are yet to reach production stage.
