Government to divest up to 11 per cent in Coal India via IPO

The government is planning to divest up to 11 per cent stake in Coal India, the country's largest coal producer, through an initial public offer, possibly in July or August.

"This has gone to an advanced stage. Merchant bankers will be appointed soon," Sriprakash Jaiswal told reporters on the sidelines of an industry event today.

Although Jaiswal did not spell out the amount the issue would raise, Coal India's chairman Partha Bhattacharyya had, earlier this week, stated that a 10 per cent stake could help garner Rs12,000 crore.

According to the minister, coal output in the country during the current financial year would rise to 603 million tonnes as against 535 million tonnes in the fiscal 2009-10.

Jaiswal, however, said the shortfall would likely increase to 81 million tonnes in the current financial year as against 70 million tonnes in the last fiscal.

"In the next year (2011-12) no matter to what extent we meet the shortfall, the requirement will grow more than that," he said.