Bhattacharyya: Gearing up

New Delhi, March 19: The government plans to divest a 10 per cent stake in Coal India by August.

“A 10 per cent divestment should happen by July-August this year,” said Partha S. Bhattacharyya on the sidelines of a conference.

The government holds 100 per cent in the country’s largest coal producer and plans to offload 10 per cent, or 63.16 crore shares, through an IPO. The draft red herring prospectus for the issue is likely to be filed with the Securities and Exchange Board of India (Sebi) by June after the annual meeting of the PSU.

Earlier this month, Sebi had allowed the coal major to offer shares to its four lakh employees.

Coal India in February appointed consultancy firm KPMG to help it to “transform” its operations in key areas.

The PSU produces 82 per cent of India’s coal and meets 45 per of its primary commercial energy needs.

The company has lowered its production target for the current plan period by 34 million tonnes (mt) to 486 mt because of delays in obtaining environmental clearances for mines.

The company is eyeing strategic partnerships or joint ventures with 10 overseas mining companies to bring coal from abroad.

These companies are from Australia, the US and Indonesia. Bhattacharyya earlier said that Coal India planned to bring 40 to 45 million tonnes from abroad through the strategic partnerships.

Some of the mines abroad are ready, while others have to be developed. The company hopes to bring coal from these ventures in the next fiscal.

Coal India is exploring three business models — entering into long-term coal supply pacts, going for outright purchase of mining assets or operating mines with owners.