The Hindu : Business : Coal India set to get Navratna status

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Tuesday, Oct 14, 2008
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Coal India set to get Navratna status

Indrani Dutta

May have to
seek listing
in three years
Will have authority to form joint ventures

KOLKATA: Public sector Coal India Ltd (CIL) is expecting to cross the last hurdle in getting a Navaratna status within a week or so. The long-pending empowerment proposal has received the recommendation of a committee headed by the Cabinet Secretary. However, the status may also require CIL to seek a listing within three years.

This development was confirmed by senior officials in the Union Coal Ministry. “The final decision will be taken by the relevant ministers after discussions with the Secretary of the Department of Public Enterprises (DPE) and this is expected within the next week or ten days”, the official told The Hindu from New Delhi.

However, the recognition may come with a rider that the PSU, which produces 80 per cent of the country’s coal, will have to make a market listing within three years.

The proposal, which CIL has been pursuing for over a year now, had already received the blessings of an interministerial committee which is headed by the Secretary of the Department of Public Enterprises. After this, it went to the Apex Committee, which is headed by the Cabinet Secretary where it was considered by the Secretary, Planning Commission, Secretary, Expenditure, and the DPE Secretary.

For CIL, this empowerment would mean that its board would be able to approve capital expenditure projects entailing an investment of up to Rs. 1,000 crore against Rs. 500 crore now. It will also have the authority to form joint ventures without going through the long-drawn process of ministerial approvals, which has earlier resulted in loss of many overseas mine acquisition opportunities.

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