CIL eyes Rs 15k cr mop-up from IPO

NEW DELHI: The maiden public offering from state-run monopoly Coal India, billed as the biggest so far in the history of corporate India, will open on Monday even as the coal major renewed its efforts to get the government to prune the list of 'no-go' areas where mining is restricted.

The issue is expected to mop up Rs 15,000 crore to beat the Rs 11,700-crore offering from Anil Ambani's Reliance Power in January 2008. The issue has been priced in the range of Rs 225-245 a share and is expected to be the star attraction for retail investors till it closes on October 21. A 5% discount will be on offer for retail investors to attract wider participation.

"The IPO is the result of all the sweat and toil consistently put in over the years by past and present employees , officers and management to build the company from scratch. Offering a share in one of the world's biggest coal mining firms (by reserves) is the best gift the government can give before Diwali to the aam aadmi," Coal India chairman Partho Bhattacharya said.

While Bhattacharya declined to comment on efforts to free the company's operations from the shackles of the environment ministry's 'go' and 'no-go' classification of coal acreages, government sources said the coal ministry had prepared a proposal to seek the Cabinet's nod.

The ministry is aiming to seek a deal wherein Coal India will get permission to start mining in open forest areas within 300 days, while the government goes through the time-consuming process of arriving at a final view on the no-go categorisation . "If this is done, Coal India will be able to ramp up production without delay. Open forest areas have thin foliage and generally are shrublands. Coal India has excellent record of afforestation and such land can be turned green by the company after mining," a source said.

At present, the country is short of approximately 60 million tonnes of coal as rise in demand outpaces growth in domestic production. While production by CIL — which accounts for nearly 80-90 % of supplies — is rising at 7%, demand is increasing by about 10%. The company had to lower its production target since 17 of its projects ran into delays over green issues.

The float has seen a broad endorsement from almost all big as well as small investment banking firms. The Centre, which will divest its 10% stake through the offering , is also bullish on the issue that will help the government fulfil Rs 40,000 crore divestment target this fiscal.

Read more: CIL eyes Rs 15k cr mop-up from IPO - The Times of India http://timesofindia.indiatimes.com/business/india-business/CIL-eyes-Rs-15k-cr-mop-up-from-IPO/articleshow/6766599.cms#ixzz12g6fsGCf

Glasgow plans to keep 2014 CWG athlete-centred

STAFF WRITER 12:50 HRS IST

London, Oct 16 (PTI) The disastrous build-up that marred the Delhi Commonwealth Games has been a lesson for next host Glasgow, which plans to keep preparations "athlete-centred and sport-focused" to avoid any glitches.

Asked what lessons have been learnt from Delhi, Glasgow 2014 Chairman John Scott said, "I've learnt we need to remain absolutely true to our vision of being about sport. We understand the need to be athlete-centred and sport-focused."

"If you get that right, the rest will fall into place. We will make sure that the village is right, that the venues are right, that the sports programme is right," he was quoted as saying by 'The Independent'.

Scott said Glasgow does not face as enormous a task as Delhi faced given its small size.

"India has admitted it hasn't done this kind of event since 1982. They had a lot to take on.

World's largest diamond bourse opens in Mumbai

MUMBAI: The world's largest diamond exchange opens in the city's business district Bandra-Kurla Complex, taking India from a manufacturing to a trading hub and challenging the dominance of traditional centres like Belgium and Israel.

Bharat Diamond Bourse (BDB), designed by eminent architect Balakrishna Doshi and spread over 20 acres with nine interlinked nine-storey towers each, has been set up at a cost of Rs.1,100 crore (over 200 million USD).

"The objective is to establish necessary infrastructure facilities for the promotion of diamonds, diamond jewellery from India and provide all support and service facilities to the traders, importers, exporters and other stakeholders," said BDB president Anoop Mehta.

India's diamond processing industry accounts for 70-75 percent of total diamond exports and employs 850,000 people, making it the largest cutting centre by value and number of employees. "All top 400 exporters are over here (at the bourse), which accounts for 90 percent of the turnover," said Mehta.

Incorporated in 1984 with a group of diamond exporters in the city, the exchange expects the turnover to rise 10-15 percent annually the next five years.

Currently, it has a turnover of $27-28 billion and hopes to grow substantially on higher participation from diamond traders across the globe. "We expect diamond traders from Israel and Belgium to start trading over here."

The diamond industry is one of the fastest growing in the world. India today leads in every aspect of the trade, whether it be the number of pieces manufactured, maximum carats being exported and highest volumes. And the BDB will now afford it the best equipped infrastructure in the world, said Mehta.

"India is a major diamond manufacturing centre with 11 out of 12 diamonds in the world being cut, polished and processed here. The BDB will ultimately help make India an international trading centre for gems and jewellery and take the step towards creating a Brand India in the world of diamonds."

With state-of-the-art facilities and security, the centrally-airconditioned BDB would have an inflow of over 20,000-27,000 people a day when it is fully operational in the next few months.

It has parking space for over 2,200 vehicles, a 12,000-square foot Customs area, another 6,000-plus sq ft area for clearing agents, banks, restaurants, food courts, landscaped areas and other amenities for the staff, visitors, businessmen and clients.

With BDB in operation, Mumbai's diamond trade currently conducted out of three buildings in the Panchratna neighborhood in south Mumbai would shift to the swank new location by December.

Read more: World's largest diamond bourse opens in Mumbai - The Times of India http://timesofindia.indiatimes.com/business/india-business/Worlds-largest-diamond-bourse-opens-in-Mumbai/articleshow/6758716.cms#ixzz12WeUlFom

Govt to auction 34 oil & gas blocks

NEW DELHI: Oil minister Murli Deora on Friday launched the government's ninth round of exploration acreage auction to hawk 34 concessions , nearly half of which are recycled from the previous round. But unlike the earlier round, there will be no seven-year tax holiday this time, a fact that may dampen investor sentiment.

"We got an investment commitment of over $1 billion in the eighth round. This time, we expect to do at least that and even better. We anticipate better response as the last auction was held when world economies were in recession," petroleum secretary S Sundareshan said.

Sundareshan said the absence of the 7-year holiday in present round would not impact investors. "The issue with investors is ambiguity. There is none in this round," he added . The Direct Tax Code, to be implemented from April 2012, will do away with profit-linked incentives for all sectors. Instead, an investment-linked incentive will be available.

Read more: Govt to auction 34 oil & gas blocks - The Times of India http://timesofindia.indiatimes.com/business/india-business/Govt-to-auction-34-oil-gas-blocks/articleshow/6757322.cms#ixzz12WeEYq00