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Business News/ Politics / Policy/  It is for Coal India board to decide on buyback: Sriprakash Jaiswal
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It is for Coal India board to decide on buyback: Sriprakash Jaiswal

Coal minister says the disinvestment in Coal India will take place only after cabinet’s approval

Coal minister Sriprakash Jaiswal. Photo: Ramesh Pathania/Mint (Ramesh Pathania/Mint)Premium
Coal minister Sriprakash Jaiswal. Photo: Ramesh Pathania/Mint
(Ramesh Pathania/Mint)

New Delhi: The coal ministry on Friday said it is for the board of Coal India Ltd. (CIL) to take a call on whether or not to buyback shares from the government.

“It (buyback) will be decided by Coal India board as we don’t have any role in it," coal minister Sriprakash Jaiswal told reporters.

The statement follows the government stating last month that at present it is not considering any proposal of Coal India buying back shares from the government.

When asked when the company’s board will take a call on buyback, he said “Coal India board does not act on our directions."

He further said that the disinvestment in the coal PSU will take place only after cabinet’s approval. However, he refused to give a timeline on further stake sale in the company.

Media reports had earlier said the finance ministry wanted CIL to buyback 5% of its shares if the company was not able to proceed with its public issue due to poor market conditions.

There was a proposal to sell 5% shares in CIL through offer for sale route. The government now holds 90% stake in the company.

When asked to comment on buyback of shares, CIL chairman S. Narsing Rao had earlier said: “I don’t think I can make any public comment on it. It is within the purview of board and let the board take a decision."

The disinvestment department had pared a plan to sell 10% stake in CIL to placate employee unions.

CIL workers’ union had last month decided to defer its proposed three-day national strike to 17 December.

CIL was listed on bourses in 2010 after the government raised Rs15,199 crore by selling a 10% stake in the country’s biggest initial public offering. The company has a cash balance of about Rs62,000 crore.

The shares of CIL were trading at Rs288 a piece on BSE in the afternoon trade, down 2.04% from the previous close. PTI

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Published: 11 Oct 2013, 08:52 PM IST
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