Cabinet also gave its approval for issue of an IPO of Cochin Shipyard Limited thus sending out the right signals
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New Delhi: The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved disinvestment of 10 per cent in Coal India Limited that could raise as much as $3 billion. It also gave its approval for issue of an Initial Public Offer (IPO) of Cochin Shipyard Limited (CSL).
“The major decision of the CCEA to disinvest 10 per cent stake in Coal India and make initial public offering for Cochin Shipyard sends out the right signal that the government is fast-tracking reforms. This would also add to investible public resources,” said the apex industry chamber CII.
After the disinvestment of 10 per cent equity, the government of India’s shareholding in CIL would come down to 68.65 per cent (with slight variation based on outcome of sale of one per cent equity shares to employees of CIL).
“The government has approved sale of 10 per cent stake in Coal India Limited (CIL),” coal and power minister Piyush Goyal said after the cabinet meeting. Asked about government’s expectations from the stake sale in the CIL, Mr Goyal said it hopes to mop up around Rs 20,000 crore. The timing of the latest CIL stake sale will be decided by the finance ministry.
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( Source : deccan chronicle )
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