Coal news and updates

Govt mulling disinvestment of 10% in CIL

August 18: The government is proposing to disinvest 10% stake of the Government of India’s equity in Coal India Ltd (CIL) out of its holding of 89.65%, Coal Minister Piyush Goyal has said.

Goyal said a National Investment Fund (NIF) was constituted on November 3, 2005, into which the proceeds from disinvestment of CPSEs were to be channelised.

Further, the government, on January 17, 2013 and February 21, 2013, approved restructuring of the NIF and decided that the disinvestment proceeds, with effect from fiscal 2013-14, will be credited to the existing ‘Public Account’ under the NIF head and this quantum would remain there until withdrawn/invested for approved purposes, he said.

Goyal said it was decided that the NIF would be utilised for subscribing to the shares being issued by the CPSEs including public sector banks (PSBs) and public sector insurance companies, on rights basis so as to ensure 51% ownership of the government in those CPSEs/PSBs/insurance companies is not diluted.

NIF was also to be utilised for preferential allotment of shares of the CPSE to promoters as per SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 so that government shareholding does not go down below 51% in all cases where the CPSE is going to raise fresh equity to meet its capital expenditure programme.

The funds were also to be utilised for recapitalisation of public sector banks and public sector insurance companies, investment by the government in RRBs/IIFCL/NABARD/Exim Bank, equity infusion in various metro projects, investment in Bhartiya Nabhikiya Vidyut Nigam Ltd and Uranium Corporation of India Ltd, investment in Indian Railways towards capital expenditure.

Goyal, however, said that in the recent past five Central Trade Unions operating in Coal Industry --  Indian National Trade Union Congress (INTUC), All India Trade Union Congress (AITUC), Bharatiya Mazdoor Sangh (BMS), Hindi Mazdoor Sabha (HMS) & Centre for Indian Trade Union Congress (CITU) had expressed reservations on further disinvestment of CIL.