Splitting Coal India Limited could increase competition and hence make production more efficient, but opinion is building against it.
The Coal India offering would follow a 5 percent stake sale in state-controlled Oil and Natural Gas Corp, worth $2.8 billion and slated for December.
Biggest ever share sale by any private or public sector co in India.
India's exports jumped by 19.37 per cent to $38.13 billion in November, while imports dipped by 1.88 per cent to $62.66 billion, according to government data released on Monday.
The PPP model for CIL was first mooted by the Planning Commission.
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The newly appointed CMD at Coal India has a tough road ahead.
With the country poised to import 142 million tonnes in 2011-12, the development holds significance as a tie-up with railways will help CIL in transporting the imported coal to its destinations.
The Union cabinet had approved Coal India's IPO last month, to divest 10 per cent of the government's stake in the Navratna PSU.
This year, Coal India plans to gauge the domestic market through a tie-up with MMTC and State Trading Corporation.
Production and prices have been stagnant for several years, but the company's cost-cutting drive is showing results.
Eight investment banks including HSBC and India's ICICI Securities and SBI Capital have submitted bids to manage a 10-per cent stake divestment in state-owned Coal India.
The rupee plunged 26 paise to an all-time low of 90.75 against the US dollar in intra-day trade on Monday, weighed down by uncertainty over an India-US trade deal and persistent foreign fund outflows.
Vedanta, a conglomerate in mining and metals, has seen a surge in its share price on the back of multiple triggers. Its demerger appears to be on track, a strong non-ferrous commodity cycle is boosting margins, and silver bulls are interested in Hindustan Zinc, its subsidiary.
India, the world's third-largest oil consumer, spent 2.5 billion euro on buying crude oil from Russia in September, 14 per cent less than the previous month, a European think tank said. India remained the second-largest buyer of Russian fossil fuels in September behind China, according to the Centre for Research on Energy and Clean Air (CREA).
After land, coal is turning out to be the latest hurdle to West Bengal's industrialisation drive.
Foreign direct investment (FDI) in India rose 18 per cent to $35.18 billion during April-September this fiscal year, while the inflow from the US more than doubled to $6.62 billion during the first half of this fiscal, according to government data released on Monday. Foreign Direct Investment (FDI) during April-September FY24 stood at $29.79 billion.
NTPC raises new demands, while CIL is not willing to yield
The matter has now been escalated and the ministry has written to Customs, Bureau of Indian Standards (BIS) and the Directorate of Revenue Intelligence (DRI) to investigate it thoroughly.
Navratna public sector unit Coal India Ltd has received a proposal to acquire 'The Kraal' -- Mahatma Gandhi's house in Johannesburg where he had lived a century ago -- and convert it into a memorial, the government has said.
'At COP30, the emphasis will be on unlocking climate finance, reinforcing the principle of common but differentiated responsibilities, and building resilience through inclusive transitions and the mainstreaming of adaptation.'
A planned stake sale in Coal India in the last financial year had to be deferred after stiff opposition from the trade unions.
CIL is charged of discriminating in favour of public sector firms in the reworked format of fuel supply agreements.
Coal India said 52 global companies have expressed interest in partnering with it for acquiring mines overseas, especially in Australia, Mozambique and Indonesia.
With Coal India deciding to pay around Rs 16,485 crore as interim dividend, the government will be able to make up for the shortfall in the disinvestment target of Rs 40,000 crore for the current fiscal.
State-run Coal India is likely to file the red herring prospectus for its initial public issue, through which the government is expecting to raise about Rs 15,000 crore (Rs 150 billion), on September 25.
The company will engage various NGOs for the construction of toilets as well as undertake awareness campaigns for better sanitation, it said adding that a total of around 100,000 households would be benefited by the sanitation initiative.
Coal India, which is likely to hit the capital markets in October, "will be in the list of Fortune 500 the day it is listed on the stock exchange," the head of a government panel on public sector units said on Monday.
The deadline for these overseas mining firms for responding to CIL's EoI notice is August 31 this year.
Coal ministry officials along with senior officials from Coal India and department of disinvestment would meet with capital market regulator Securities and Exchange Board of India this month to take forward the process of listing the public sector unit.
India should simultaneously prioritise domestic exploration and production of more oil and gas in the country, and ensure we retain diversified suppliers for imports, points out former foreign secretary Ranjan Mathai.
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CIL aims to sell 12.6 mn shares to retail investors
India and Russia have solidified a five-year plan to enhance their economic and trade partnership, while also addressing the ongoing conflict in Ukraine and the threat of terrorism.
A top Coal India official, however, said the hike would be 'modest' and said, 'our prices are 50 per cent discounted as compared to the global prices. Now there has been a major wage revision resulting in over Rs 4,000 crore (Rs 40 billion) additional financial burden on us which cannot be met through production and productivity alone.'
India's brittle energy security is inextricably linked to two opposing paradigms - fossil fuels, and the transition to green energy. The first powers the present; the second paves the way for Viksit Bharat in 2047.
India's largest initial public offering (IPO), to be floated by Coal India Ltd, is generating enormous interest in the grey market. Investment bankers and stockbrokers that control this unregulated market are already trading CIL shares at a Rs 10-12 premium - even before the price band or issue date have been officially announced.
Jindal Steel and Balco emerged as the top bidders.
Finance Minister Arun Jaitley has said the larger interest of the public sector would be fully protected.
M Veerappa Moily's takeover of the environment & forests ministry last month, it appears, is turning out to be a blessing for Coal India Ltd (CIL), the world's largest coal producer.
The government on Thursday fixed Rs 358 a share as the floor price for up to 10 per cent stake sale in Coal India on Friday, which may help the exchequer garner about Rs 22,600 crore (Rs 226 billion) in the biggest sale of shares.
The company has also advised power firms to use trucks to carry coal from remote mines, like the Amrapali open cast pit in eastern Jharkhand state.
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