Coal India stake sale plan halved to 5%
1 Aug 2013 4:47 AM IST
Government has halved to 5 per cent the stake it plans to sell in Coal India Limited, following an agreement with unions on Tuesday, Coal Minister Sriprakash Jaiswal said.
The government's original plan was to sell 10 per cent stake in Coal India to raise Rs 20,000 crore, but the proposal had met with stiff resistance from trade unions who threatened to go on strike. After consultations with unions, the government has now decided to sell only 5 per cent through open market, with the remaining through other options like share buyback.
'This was our third meeting with the trade unions. On the advise of trade unions we have decided that instead of 10 per cent there would disinvestment of 5 per cent (in Coal India),' Jaiswal told reporters here. 'For the remaining five per cent, the government will devise some other mechanism. The trade unions are ready for this,' the minister said. When asked what the options are with the government for further 5 per cent stake sale in the company, the minister said, 'There are many options.' He, however, did not elaborate.
The Coal Ministry will again hold a meeting with the trade unions to deliberate on some of the other issues.A meeting between Coal Ministry and CIL worker unions held on 23 July to resolve the disinvestment issue had remained inconclusive.CIL employees had earlier threatened to go on strike if the government went ahead with 10 per cent stake sale in the PSU major.
The government's original plan was to sell 10 per cent stake in Coal India to raise Rs 20,000 crore, but the proposal had met with stiff resistance from trade unions who threatened to go on strike. After consultations with unions, the government has now decided to sell only 5 per cent through open market, with the remaining through other options like share buyback.
'This was our third meeting with the trade unions. On the advise of trade unions we have decided that instead of 10 per cent there would disinvestment of 5 per cent (in Coal India),' Jaiswal told reporters here. 'For the remaining five per cent, the government will devise some other mechanism. The trade unions are ready for this,' the minister said. When asked what the options are with the government for further 5 per cent stake sale in the company, the minister said, 'There are many options.' He, however, did not elaborate.
The Coal Ministry will again hold a meeting with the trade unions to deliberate on some of the other issues.A meeting between Coal Ministry and CIL worker unions held on 23 July to resolve the disinvestment issue had remained inconclusive.CIL employees had earlier threatened to go on strike if the government went ahead with 10 per cent stake sale in the PSU major.
Next Story
