India's largest coal producer, state-owned Coal India, has started discussions with the government on listing its shares but was yet to decide the exact timing for it, Chairman Partha Bhattacharyya said on Thursday.
The company has a deadline to list of October 2011 under an arrangement where the government gave it more operational autonomy, but an equity sale still requires government and regulatory approval.
"We have started discussions but we need to discuss more. Once this new set-up has come, it's now time to open it out," Bhattacharyya told reporters.
Last month's unexpectedly strong election victory of the ruling Congress-led coalition has raised expectations of a renewed push to sell stakes in state firms, with a 55 percent rise in the stock market .BSESN this year also adding to the lure of selling equity.
"It's difficult to say at this point of time," Bhattacharyya said when asked if the listing would be in the 2009/10 fiscal year that ends next March.
India would let state-run firms sell equity stakes and dilute a small portion of government holdings, but there were no plans for big-ticket disinvestments in the near future, a senior ministry official told Reuters on Tuesday.
Bhattacharyya said listing was important for Coal India to pursue its resettlement and rehabilitation policy, so that it can give shares to the owners of the land that is used for the mines.
The company plans capital expenditure of 32 billion rupees ($680 million) in 2009/2010, part of planned investment of 179 billion rupees in the five years to 2012, he said.
Coal India could add to it assets in Mozambique, and was also interested in Indonesia, Bhattacharyya said.
"Indonesia is certainly a country of interest, but we have to understand a little more of the new mining laws," he said.
SourcE: Reuters
No comments:
Post a Comment