New Delhi: The Planning Commission has favoured the proposed listing of public sector behemoth Coal India Limited (CIL) to enable it raise additional resources to fund its ongoing expansion plans.
“It (listing) is a good idea. If the law permits then we can get CIL listed for it and could help the PSU raise resources,” Planning Commission member Kirit Parikh told PTI.
Parikh’s statement assumes importance in the backdrop of the government’s opinion that more PSUs should get listed on the bourses to raise resources. The Coal Ministry has already approved appointment of 40 independent directors on the board of the state-run coal giant and its seven subsidiaries, which is being considered crucial before it is listed.
CIL Chairman and Managing Director P S Bhattacharya had earlier said that divestment of CIL would be considered after receiving the report of the Shankar Committee, which was constituted to suggest steps to restructure the coal PSU.
CIL is understood to have sought the Coal Ministry’s nod for an Initial Public Offering (IPO) of 5% of its total paid-up capital of about Rs6,000 crore.
The face value of a share would be Rs10 and the issue would be made at a premium of Rs100 per share. The PSU was aiming to mop up about Rs3,000 crore from the proposed IPO.
The coal giant has chalked out an ambitious Rs15,000- crore plan for its existing and new projects during the 11th Plan period. The CIL Board has five functional directors, two nominees from Coal Ministry and one from the Railways.