Free Press Journal

Coal India moots higher dividend to govt for FY 12


Mumbai State- run Coal India ( CIL) has proposed to pay a higher dividend of Rs 5,684.73 crore to the government for 2011- 12 compared to the last fiscal.

The coal major had paid a dividend of Rs 2,217 crore to the government for la

st fiscal, Rs 2,210 crore for 2009- 10 and Rs 1,705 crore for 2008- 09. The higher payout is expected to provide some relief to the government which is facing financial problems due to rising subsidy bill and poor receipt from disinvestment.

During 2010- 11, the government collected Rs 25,978 crore as dividend from public sector enterprises.

The target for the current fiscal was pegged at Rs 23,495 crore.

Neyveli Lignite Corporation ( NLC) has offered to pay a dividend of Rs 439.51 crore to the Coal Ministry for 2011- 12, according to an official document. ” CIL and NLC together are proposing to pay a dividend of Rs 6,124.24 crore to the government for 2011- 12,” the document said.

Call on ONGC FPO deferred

The panel of ministers would be meeting again within the next 10 days to finalise stake sale in bluechip company ONGC in the backof the new guidelines by market regulator Sebi.

” We have discussed today the implications of the new SEBI guidelines. We are yet to take a decision in regard to mode and timing to be adopted ( for divestment in ONGC),” Oil Minister Jaipal Reddy said.

The government plans to sell 5 per cent, or 427.77 million shares, either through the follow- on public offer ( FPO) or IPP. Volatile stock market conditions is forcing the government to delay stake sale in PSUs. Although the government had planned to raise Rs 40,000 crore from disinvestment in the current fiscal, it has not been able to make much headway.