New Delhi:State-owned Coal India said on Sunday it is not “bothered” about investors’ tepid response to share sales of PSUs like NMDC, NTPC and REC and expects its estimated Rs 12,000-crore IPO to be a “huge success”.
“It does not bother us. Investment in Coal India Ltd (CIL) should be perceived as investment in the India growth story,” the company’s chairman P S Bhattacharyya told PTI when asked if he was worried that firm’s public offer will also witness a muted response like that of the three PSUs.
“We are confident of a huge success for our disinvestment programme. Being the world’s largest coal firm, we are an unparalleled success and growth story in the world,” he said.
The government is planning to divest its 10% stake in the coal producer, which may mop up Rs 10,000-12,000 crore through an initial public offer slated to hit the market in July-August this year, coal minister Sriprakash Jaiswal said on Friday.
The company with an estimated 63 billion coal reserves meets over 80% of the country’s dry fuel demand.
“Last fiscal, we grew at over 6% despite the impact of the global economic meltdown. We will grow at a rapid pace on the back of ever growing domestic demand basically from the power sector,” Bhattacharyya said.
The company has lined up a capital expenditure of about Rs 10,000 crore primarily focusing on global ventures. Currently, it is evaluating five such global partnership proposals from three companies, including US-based Peabody.
On the domestic front, CIL has lined up a production target of 461.5 million tonnes for the current financial year and plans to import additional four million tonnes of coal.
Besides, the company has planned to increase the capacity of underground mining operations in addition to resuming production from abandoned blocks. It has also entered into an agreement with GAIL for coal-gasification project.
“I have been in the company when it was run on budgetary support from the government. I am a witness to its turnaround due to a number of pragmatic steps taken during the VIII Plan Period (1992-1997),” he added.
The company’s proposed disinvestment plan has been sent for inter-ministerial discussions and is likely to be placed before the Cabinet by the end of this month or early May.
During last fiscal, public offerings of three PSUs--NMDC, NTPC and REC-- drew a lukewarm response from investors.
The government plans to raise about Rs 40,000 crore through disinvestment of PSUs this fiscal to part-fund its social and infrastructure programmes.