Coal news and updates

Rs 58,425 cr to be raised via CIL, ONGC, NHPC divestments

December 10: The government has finalised plans to mop up around Rs 58,425 crore from sale of a part of its stake in Coal India Ltd (CIL), ONGC Ltd and NHPC Ltd under its disinvestment programme for 2014-15, Finance Minister Arun Jaitley said in a written reply in the Rajya Sabha on December 10.

As per the Action Plan of 2014-15, CIL, ONGC and NHPC have been approved for disinvestment, he said.

The minister pointed out that during the last four financial years, the government was unable to raise the targeted amount from sale of stakes in the PSU companies.

In 2010-11, the government had planned to raise Rs 40,000 crore, but actual receipts stood at Rs 22,144,21 crore, while the actual receipts in 2011-12 were at Rs 13,894.05 crore against the same target, he said.

However, in 2012-13, the actual receipts rose to Rs 23,956.81 crore even as the target was brought down to Rs 30,000 crore for the year but in 2013-14, actual receipts again fell to Rs 15,819.46 crore as against the target of Rs 40,000 crore, the minister said.

Jaitley said, as a general phenomenon, other things remaining the same, when the supply of any stock in the market increases, there is a run-down on the stock price.

“Disinvestment increases the quantity of CPSE stocks in the market. Therefore, the recent fall in the share prices of Coal India, ONGC and NHPC is nothing unusual and does not show any diminished appetite for these stocks,” he added.