Online BusinessCoal India pitches for 15% disinvestment
The country"s largest coal producer, Coal India Limited (CIL), has proposed to the government that 15 per cent of the company can be divested.
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"CIL has proposed 15 per cent disinvestment in the company to the Department of Disinvestment and the Coal Ministry," sources in the know told PTI.
The 15 per cent disinvestment would see 10 per cent of government equity going into the proposed initial public offering (IPO) of the public sector undertaking and the rest 5 per cent would be utilised to offer stocks to employees and those who have lost land for the mines.
Out of the five per cent, 3 per cent has been proposed to be given to employees as stock option and two per cent to the land losers, the sources said.
They said the company is discussing the stake sale plan with the Department of Disinvestment in the finance ministry.
"There have been some regulatory issues on giving stock options to employees and shares to land losers. Discussions are on and CIL hopes that the proposal would soon be forwarded to the Cabinet," sources said.
They added that the company was likely to initiate mandatory steps like filing the red herring prospectus in July-August next year for the proposed IP0.
The Department of Disinvestment had last month sought clarification from the Coal Ministry on the proposed disinvestment.