Friday, September 24, 2010

Govt may fix Coal India IPO price on Oct 12

New Delhi, Sept. 24 The Government expects to finalise the pricing of Coal India\'s initial public offer (IPO) on October 12, said the Chairman, Mr P. S. Bhattacharyya, on Friday. Coal India, which recently received SEBI approval, proposes to enter the market on October 18. The Government is divesting 10 per cent stake in the company through the IPO.



The coal PSU, unlike its counterparts in the steel sector, may not seek relief from the Government proposal on profit sharing with people displaced by projects. "We are not seeking any concession in profit sharing," Mr Bhattacharyya told reporters on the sidelines of the 3 rd Coal Summit. Stating that Coal India supported the proposed policy for distributive justice, he said: "It is important to sustain mining operations that are happening in the backward regions."



As part of the new mining legislation, the Government proposes to make it mandatory for mining firms to share 26 per cent of their annual profits with affected people.



The Steel Minister, Mr Virbhadra Singh, had recently said that some consideration should be given for PSUs such as SAIL and NMDC for their historical role in meeting the social obligations.



Speaking to reporters on sidelines, the Coal Minister, Mr Sriprakash Jaiswal, said there was no proposal before the Group of Ministers on giving concessions to PSUs on profit sharing.



Commenting on the confrontation between environment protection and economic development, the Finance Minister, Mr Pranab Mukherjee, said: "We must work out a strategy so that both ends are met". The solution does not lie in stopping mining but properly compensating the affected people. "Compensating those displaced is a challenge and we are addressing that issue," Mr Mukherjee said inaugurating the Coal Summit.



Mr Mukherjee suggested that the country should take advantage of the technological developments, especially in the information technology sector, to resolve the apparent contradictions.




News From: http://www.7StarNews.com

No comments:

 
eXTReMe Tracker