Two state-owned firms, Oil India Ltd and power generator NHPC Ltd, make up nearly half of the expected $1.5 billion worth of share sales ready to hit the market through 18 IPOs, says Jagannadham Thunuguntla

1. India to sell up to 10 pct stake in Coal India
Wed Jun 17, 2009 4:49pm IST
By C.J. Kuncheria and Nidhi Verma
NEW DELHI, June 17 (Reuters) - India will sell up to 10 percent of its holding in state-owned
Coal India Ltd, a minister said on Wednesday, in the latest share sale plan announced by
the government to raise funds and plug a bloated fiscal deficit.
Policymakers have said raising revenue through divestments would help keep a lid on the
fiscal deficit, which was at 6.2 percent of gross domestic product in the year ended March
31.
Two state-owned firms, Oil India Ltd and power generator NHPC Ltd, make up nearly half of
the expected $1.5 billion worth of share sales ready to hit the market through 18 IPOs, data
from Indian deal tracker SMC Capital showed.
Coal minister Sriprakash Jaiswal said the government hoped to sell some stake in Coal India
in the current fiscal year.
"Disinvestment in the coal sector is absolutely necessary," he told a news conference. "The
target we have kept is up to 10 percent."
Coal India, which contributes 85 percent of India's coal output, aims to produce 435 million
tonnes in 2009/10, nearly 8 percent higher than the previous year.
The company had sales of 326.34 billion rupees ($6.8 billion) in the fiscal year ended March
2008, and profit before tax of 87.38 billion rupees, according to the latest available data on
its website.
Jaiswal said the government would give priority to the coal miner's employees and people
who have lost their land, while issuing shares.
An 80 percent jump in the main stock index .BSESN from its March low is seen aiding share
sales. Shares in listed state-run companies have risen about 74 percent in the same period.
"Seeing the price movement in the public sector units stocks, there is quite a lot of
confidence in them, especially amongst foreign investors," said R.K. Gupta, managing
director at Taurus Asset Management in New Delhi. (Writing by Mayank Bhardwaj and
Devidutta Tripathy; Editing by Ranjit Gangadharan)