CIL disinvestment process to begin by December

CIL disinvestment process to begin by December
PTI
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First Published: Mon, Jun 29 2009. 03 53 PM IST
Updated: Mon, Jun 29 2009. 03 53 PM IST
New Delhi: Coal minister Sriprakash Jaiswal said on Monday the government would initiate the process of offloading 10% equity in the state-owned Coal India Limited (CIL) in the next six months.
“We are considering to disinvest a maximum of 10% of our stake in CIL. The process for the same will start in next six months,” Jaiswal said.
Even though the divestment process may start by December, the government is expected to take final decision on selling the stake in the country’s largest coal producer after the upcoming budget session of the Parliament, he added.
The coal major would give priority to its workers in allotment of shares of the disinvested entity. CIL also aims to give a boost to its resettlement & rehabilitation policy by offering shares to the people from whom land is acquired for mining purposes.
“If we disinvest, first preference will be given to our workers while alloting shares second preference to people from whom land is acquired for mining. If workers take that 10% shareholding of CIL then we will only give shares to the workers,” he said.
The coal major, which has an authorised capital of about Rs8,000 crore, may also appoint an investment banker soon for carrying out the formalities for the proposed initial public offer.
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First Published: Mon, Jun 29 2009. 03 53 PM IST