Dismissing all speculations regarding stage being set for divestment of 10 per cent Government's stake in Coal India ltd (CIl), the Coal Ministry has indicated to the Department of Disinvestment (DoD) that till dues worth Rs8,000 crore which power generation companies like National Thermal Power Corporation (NTPC) owe to the Maharatna company are not cleared and labour unions issues are not resolved, the stake sale process cannot go through.
According to official sources, the Coal Ministry has expressed these reservations in its views sent across to the DoD. The ministry has made it clear that subject to resolution to these issues, nothing can be said with surety regarding the matter as things are at a very “preliminary stage”.
The Pioneer, which had first reported on April 5 on the issue, had precisely pointed out that though DoD had sought CIl's views regarding going ahead with 10 per cent divestment of Government's share in it, the matter was at a very initial stage and things would move forward only if a positive indication comes from the Coal Ministry and the state-owned entity on it.
Subsequently the Coal Ministry has written back to the DoD that it is awaiting payments worth Rs8,050 crore from various power companies (including NTPC which owes CIl Rs2,840 crore and Damodar Valley Corporation which owes around Rs 750 crore).
RsThese outstanding figures are as on March 31, 2013 and with Coal Ministry busy resolving various issues related to the trade unions of CIl, it has told DoD that till these issues are not resolved, it won't be advisable to start the disinvestment process.
In this light, ministry officials dismissed reports that the Government has made up its mind regarding divestment of CIl.
Earlier the DoD had asked the Coal Ministry that since CIl has a cash deposit of Rs58,000 crore, whether it could be in a position to buy back Government's share in it.