The blue-print of the IPO was finalised on Wednesday evening at a meeting between finance minister Pranab Mukherjee and coal minister Sriprakash Jaiswal
State-run Coal India (CIL) is likely to hit the market by the third week of October with India's largest ever public offer to raise up to Rs15,000 crore, reports PTI.
The government is disinvesting 10% of its stake in Coal India (CIL), the world's largest coal miner, through the initial public offer (IPO).
"As of now, it seems that CIL’s IPO will open on 18th October and close on 21st October. The 10% disinvestment will see the government raising Rs 12,000-Rs15,000 crore," a person in the know of the development told PTI.
The blue-print of the IPO was finalised on Wednesday evening at a meeting between finance minister Pranab Mukherjee and coal minister Sriprakash Jaiswal. The meeting was also attended by additional secretary, coal, Alok Perti and Department of Disinvestment secretary Sumit Bose and Coal India chairman P S Bhattacharyya, the source said.
Coal India, the largest global coal miner, sells the dry fuel 50% cheaper at around $25 a tonne than the prices prevailing in the international market.
Although CIL's IPO was planned in August-September, it was delayed due to opposition to the government's 10% stake sale move from trade unions and political parties.
"The Department of Disinvestment has finalised the issue date. The company will now file the Draft Red Herring Prospectus (DRHP) of the IPO by the first week of August," the source added.
The government is selling 10% of its stake in CIL disinvestment. It currently holds 100% equity in the coal major. CIL had earlier said it will issue over 63 crore shares in the IPO.
The Union cabinet had last month approved to disinvest 10% of the government's holding in CIL. The Centre holds 100% equity in the company.
Coal India produced 431.5 million tonnes of coal in the last fiscal. The country's coal output stood at 531.5 million tonnes in 2009-10.
Anil Dhirubhai Ambani Group (ADAG) firm Reliance Power, in January 2008, raised Rs11,500 crore through its IPO — the biggest in India till date.
Aiming to raise Rs40,000 crore through disinvestment in this fiscal, so far sell off in Satluj Jal Vidyut Nigam (SJVNL) has fetched the exchequer over Rs1,000 crore. The government is likely to sell its stake in 10 PSUs, including MMTC, SAIL and Hindustan Copper, this fiscal.
The government, in 2009-10, had raised Rs25,000 crore through stake sales in Oil India, NMDC, REC and NTPC. NMDC’s 8.38% stake sale had fetched the government about Rs10,000 crore.
TRAI has suggested that operators be charged one-time payment for holding extra spectrum beyond the contractual limit of 6.2 MHz and the same may be linked to the price of 3G spectrum for which auction was held recently
Market leader Bharti Airtel today termed as "lopsided" the report of telecom regulator Telecom Regulatory Authority of India (TRAI) on spectrum charges, saying it was not liable for "one time charges" for the frequency beyond 6.2 MHz, reports PTI.
Demanding a level playing field for the old operators, Bharti group chief Sunil Mittal told PTI, "Our view is that the spectrum given to us and other operators from time to time is under a policy and there is no question of any additional payment for this."
TRAI has suggested that the operators be charged one-time payment for holding extra spectrum beyond the contractual limit of 6.2 MHz and the same may be linked to the price of third generation (3G) spectrum for which auction was held recently.
Mr Bharti, he said, has been paying extra spectrum charges on the additional spectrum for years now and there is no rationale for one-time charge for any spectrum held by the firm.
Asked if he would take up the issue with prime minister Manmohan Singh, he said, "We have written to the regulator and the (telecom) minister. We have also seen the reports that the issue might be referred to an Empowered Group of Ministers (EGoM). I am very hopeful that justice will be done."
Mr Mittal also slammed the regulator for suggesting that the operators must buy second generation (2G) spectrum at the new price for their next licence period of 20 years as and when their old licences come up for renewal.
With most of Bharti's licences due for renewal in the next 2-3 years the company may have to shell out a whopping up to Rs15,000 crore for renewing its licences and at a time when the new operators have been given the same spectrum at Rs1,650 crore a year ago.
"TRAI has created a lopsided situation. Certain set of operators have got spectrum and they are going to enjoy it for next 20 years at a much lower price and some operators like us will have to pay much higher if TRAI recommendations are accepted," Mr Mittal said.
The company will wait for the renewal policy to be announced by the government. "All that I would say is that whatever is the decision it should be absolutely same, equal and level playing field for all the operators. And that will be acceptable to us," he said.
"You can’t have a difference that one set of operators are paying Rs1,650 crore and others are expected to pay a multiple of that. Spectrum is spectrum whether is lying here or there. If they (government) want to charge a higher price, then they will have to go back and charge all those who got spectrum in 2008 at the same charge," he added.
The decision follows the intervention by the PMO after mining minister Jaiprakash Jaiswal expressed his unhappiness at the environment ministry's move to declare 40 coal blocks under nine collieries as "no-go area" where no mining will be allowed.
Power project developers can now breathe easy as the environment ministry has agreed to increase the "go zone" for coal mining in forest areas by 10% from 344,000 hectares to 380,000 hectares in eight coal blocks in the country, reports PTI.
"Go areas" are the designated zones in forest areas where coal mining is allowed in case they meet the environment clearance.
The decision to increase the go area in coal blocks came following intervention by the Prime Minister's Office (PMO) after mining minister Jaiprakash Jaiswal expressed his unhappiness at the environment ministry's decision to declare 40 coal blocks under nine collieries as "no-go area" where no mining will be allowed.
Mr Jaiswal had complained to the PMO that dividing coal fields into "go" and "no-go" area by the environment ministry would result in a massive 600 million tonne annual shortfall in production.
At the intervention of PMO, a joint survey was conducted recently wherein the ministries agreed to settle on 3.8 lakh hectares.
While the environment ministry proposed to put 3.49 lakh hectares into the "go" zone, the coal ministry demanded 4.5 lakh hectares.
However, the Hasdeo-Arand coalfields of Chhattisgarh have been excluded.
The entire field remains firmly in the "no-go" zone in view of its ecological sensitivity.
Also, the new agreement includes some underground mines, which are environmentally preferable to the original strip mining proposals.
"This is for the first time that underground mines have also been specified. We have no problem with such mining," environment minister Jairam Ramesh said recently.
The environment ministry has classified forest land into "go" and "no-go" areas for coal mining firms.
According to the initial classification, the ministry had identified nearly 3,45,000 hectares of land where mining could be carried out, subject to environmental and other clearance. The other areas were “no-go” areas.
"But go areas does not mean clean chit for clearance.
"In such zones, environment nod will be given if green conditions are met. Otherwise it can be no zone as well," Mr Ramesh said.