Mumbai: Rating and research firm ICRA Ltd on Thursday awarded its highest rating, Grade 5, to the initial public offering (IPO) of state-owned mining major Coal India Ltd (CIL). The grade indicates strong fundamentals of the company going public.
CIL, the world’s largest coal producer and which accounts for 82% of the coal produced in India, plans to sell 10%, or about 63.16 crore shares, of the government’s stake. The proceeds of the issue, expected to open late October, will go to the government. ICRA said that the IPO grade reflects the highly favourable demand-supply situation in the domestic coal industry, and CIL’s near monopoly, among various other factors.
“The grade also reflects the continuous improvement in labour productivity, use of better technology and high share of production from profitable opencast mines, leading to a better control of costs and thus, leading to healthy overall profitability of CIL,” ICRA said in its statement.
IFC to help set up solar projects in Gandhinagar
Ahmedabad: International Finance Corp or IFC, a member of the World Bank Group, has joined hands with Gujarat government to set up a 40 megawatt rooftop solar project in Gandhinagar, the capital city of the state.
In the first of its kind project in India, IFC and Gujarat Energy Research and Management Institute will jointly design and structure a distributed/ rooftop solar power project in Gandhinagar under a public-private partnership deal, a release from IFC states. Initially, a pilot project for a 5-megawatt solar installation will be undertaken which is will help to reduce greenhouse gas emissions by about 6,000 tons a year and mobilize private sector investment.
Following the pilot project, the government will roll out the program for the entire city.
The entire project includes installation of rooftop solar panels that will generate 40 megawatts of power which will be supplied to around 100,000 households in Gandhinagar.
Teams of IFC’s Public-Private Partnership and Sustainable Business Advisory will provide advice to the Gujarat Energy Research and Management Institute for the design and structuring of this project, the release said.
The chosen private player’s responsibilities will include financing, construction, operation, and maintenance of the facilities.
This project, which is the first of its kind in , will also contribute to Gujarat’s goal of installing 500 megawatts of solar capacity by March 2014.
—A Staff Writer