Coal news and updates

Cabinet decision on Coal India FPO likely by Dec: Jaiswal

Coal Minister Shri Prakash Jaiswal believes Coal India (CIL) divestment is likely to be finalised in next one-two months. In an exclusive interview to CNBC-TV18, he said the Cabinet will take final call; the government is hopeful of divesting 5 percent stake in the world’s largest coal producer. CIL was listed on the bourses in 2010 after the government raised Rs 15,199 crore by selling 10 percent stake in the country's biggest initial public offering. The five percent dilution will fetch nearly Rs 10,000 crore to government exchequer. The Government of India, which currently holds 90 percent stake in the world's largest coal producer, intends to sell 31.6 lakh shares via follow-on pubilc offer Meanwhile, a section of the trade unions have been opposing government’s decision to further divest stake in the company. Recently, trade unions at CIL put off a three-day workers strike from September 23 to December. ( Read More ) Speaking on government’s landmark decision of approving auction of coal blocks to private companies, Jaiswal said that he expects the coal block auction process to commence in two months and as per new policy, only fully explored coal blocks will be given. While this move was appreciated by private players, their key concern remains slew of approvals . Allaying these fears, Jaiswal said that the new blocks which will be up for auction are likely to have all environment ministry approvals. He said that power plants currently have a surplus inventory of coal and 158 fuel supply agreements (FSAs) have been signed. Further, technical problems are leading to delay in signing of balance 14-15 FSAs. Watch Video

Source: MOneycontrol