Coal India stake sale likely in Nov or Dec: Jaiswal

Written by PTI | New Delhi | Updated: Oct 29 2013, 11:13am hrs
The government on Monday said the 5% stake sale in state-owned Coal India (CIL) is likely to take place either in November or December.

"It is likely that it (stake sale in Coal India) may happen either in November or December," coal minister Sriprakash Jaiswal told reporters here. "You may be aware that the CIL chairman has gone (overseas) for this purpose only," he added.

To woo foreign investors for the Coal India stake sale, the disinvestment department (DoD) has embarked on a roadshow spanning five nations, including Germany and the UK. The roadshow began last week amid threats by workers of the state-owned firm to go on strike in December against the move to divest its stake further.

The government currently holds 90% stake in CIL. It has already selected seven merchant bankers, including Goldman Sachs, Credit Suisse and SBI Caps, to manage the CIL stake sale which is to take place through the offer for sale route.

CIL workers' union had in September decided to defer its proposed three-day strike to December 17. Earlier, it had been planned from September 23.

The minister also said that despite the production of CIL being affected in the current month on account of Cyclone Phailin, "We are hopeful that (Coal India) will achieve its production target (of 482 million tonne) for the current fiscal."

CIL got listed on the bourses in 2010 through an initial public offering in which the government raised R15,199 crore by

selling 10%.