Coal India board to discuss tomorrow special dividend to govt

State-owned Coal India Ltd has called a board meeting tomorrow to consider giving special

RELATED ARTICLES

dividend to the government.

"Coal India board will meet on December 16 to discuss the option of special dividend," a source privy to the development said.

The development follows Prime Minister Manmohan Singh asking ministries of Coal and Heavy Industries to explore options like share buyback and special dividend to meet the Budget estimate.

Coal Minister Sriprakash Jaiswal and Heavy Industries Minister Praful Patel had met the Prime Minister to iron out differences over disinvestment of Coal India Ltd (CIL) and Bharat Heavy Electricals Ltd (BHEL).

"BHEL and Coal India have been asked to come back with various options. These options are buyback, dividend payments, disinvestment," Finance Minister P Chidambaram, who also attended the meeting, had said.

When asked whether the option of share buyback was also being explored in CIL board meeting, the source said: "Not really, it requires the full board."

Chidambaram had been emphasising that the government would not allow the fiscal deficit to exceed 4.8% of the GDP in the current financial year.

The government has budgeted to raise Rs 40,000 crore from minority stake sale in PSUs in the current fiscal. With eight months of the fiscal already over, it has managed to garner only over Rs 1,325 crore through stake sale in six PSUs.

The stake sale of Coal India Ltd (CIL) has been hanging fire for long due to opposition from trade unions.

The government had originally planned to divest 10% in CIL, but after stiff opposition from unions, it lowered it to 5%.

The government currently holds 90% stake in CIL.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Amit Shah deserved to be crowned President of India, some say

    The Bharatiya Janata Party is now firmly in the hands of Modi’s alter ego, which in plain English means ‘another side of oneself, a second self’

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Necessary yet inadequate boost to education

The finance minister, in the very first minutes of his ...

Zehra Naqvi

We must overcome the fear of death

It is the biggest irony that the only thing that’s ...

Dharmendra Khandal

Jawai leopards and locals can coexist peacefully

At first glance, the Jawai landscape seems like a large ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture