CIL to seek legal opinion on reserving stocks for employees | business | Hindustan Times
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CIL to seek legal opinion on reserving stocks for employees

business Updated: Dec 06, 2009 14:41 IST

PTI
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State-owned Coal India Ltd, which is mulling over 15 per cent stake dilution, will soon seek legal opinion on reserving some shares for its employees and land losers, as suggested by the disinvestment department.

"As suggested by the disinvestment department. Coal India will soon take the advice of a legal firm on the matter of allotting shares to its employees and land-losers," a top government official told PTI.

Coal Minister Sriprakash Jaiswal had earlier said that the Navratna company could sell a maximum of 10 per cent stake. However, CIL wants to reserve 5 per cent stake for its employees and land losers in the proposed divestment.

The government holds 100 per cent equity in the coal firm. Jaiswal had earlier ruled out raising additional equity by CIL as part of the proposed disinvestment programme.

Of the five per cent, three per cent is for the employees as stock options and two per cent for those whose land have been acquired or could be acquired in the future by the firm for mining purposes.

Also, the official said the coal major will appoint a Merchant banker to oversee its internal financial structure and suggest reforms.

CIL spokesperson could not be reached for comments.