It is for Coal India board to decide on buyback: Jaiswal
Oct 11 2013 , New Delhi
"It (Buy back) will be decided by Coal India (CIL) board as we don't have any role in it," Coal Minister Sriprakash Jaiswal told reporters here.
The statement follows the government stating last month that at present it is not considering any proposal of Coal India buying back shares from the government.
When asked when the company's board will take a call on buyback, he said "Coal India board does not act on our directions."
He further said that the disinvestment in the coal PSU will take place only after Cabinet's approval. However, he refused to give a timeline on further stake sale in the company.
Media reports had earlier said the Finance Ministry wanted CIL to buy back 5 per cent of its shares if the company was not able to proceed with its public issue due to poor market conditions.
There was a proposal to sell five per cent shares in Coal India through offer for sale route. The government now holds 90 per cent stake in the company.
When asked to comment on buyback of shares, CIL CMD S Narsing Rao had earlier said: "I don't think I can make any public comment on it. It is within the purview of board and let the board take a decision."
The Disinvestment Department had pared a plan to sell 10 per cent stake in CIL to placate employee unions.
Coal India Limited workers' union had last month decided to defer its proposed three-day national strike to 17 December.
CIL was listed on bourses in 2010 after the government raised Rs 15,199 crore by selling 10 per cent stake in the country's biggest initial public offering.
The company has a cash balance of about Rs 62,000 crore.
The shares of Coal India were trading at Rs 288.00 a piece on BSE in the afternoon trade, down 2.04 per cent from the previous close.