Exclusive: Govt will always retain ownership of NLC India and Coal India, says Pralhad Joshi

Pralhad Joshi, Union Minister for Coal, Mines and Parliamentary Affairs.

Union minister for coal, mines and parliamentary affairs Pralhad Joshi told Moneycontrol in an exclusive interview that the government intends to keep the ownership of all the public sector undertakings (PSUs) currently under the Ministry of Coal.

His comments came amid talks that the Ministry of Finance is likely to sell up to a 10 percent stake in some PSUs including the coal ministry’s NLC India (formerly Neyveli Lignite Corporation).

“I want to make it clear that the management and ownership of the PSUs under the coal ministry—NLC India and Coal India Ltd—will always remain with the government of India,” Joshi said.

He added that any decision to sell up to a 10 percent stake via the offer for sale (OFS) route will be taken by the Ministry of Finance.

Also read: Exclusive: Coal push may continue even after doubling capacity by 2030, says Pralhad Joshi.

Shares of NLC India, a producer of lignite and coal with a market capitalisation of about Rs 32,585 crore, have gained 80 percent over the past three months.

In an interview to Moneycontrol in July 2023, NLC India chairman and managing director Prasanna Kumar Motupalli said the government’s stake in NLC India is one of the highest among all PSUs.

“As on date, the government of India has a 79.2 percent stake in NLC, which in all likelihood is the highest in the public sector. The government now is focusing more on asset monetisation instead of divestment. So as of date, there is no plan for divesting the government stake in NLC India,” Motupalli said on July 13, 2023.

As per Moneycontrol’s report dated January 5, 2024, the finance ministry may sell up to 10 percent each in NLC India, Mazagon Dock Shipbuilders and Indian Railway Finance Corporation via the OFS route before March 31 to add to its disinvestment proceeds for FY24.

Of the targeted disinvestment proceeds of Rs 51,000 crore in FY24, the government has netted Rs 10,051.73 crore so far. A 10 percent sale of stakes in these three companies may fetch a maximum of Rs 21,200 crore, based on the current market price of their shares.

Read the full interview and coverage on January 11 and 12, 2024.