Disinvestment of Coal India Ltd (CIL) Through OFS Successfully Completed;

Disinvestment of Coal India Ltd (CIL) through OFS was successfully completed today. An amount of Rs 22557.63 crore was realized through the CIL disinvestment process. This is the largest ever disinvestment among Central Public Sector Enterprises (CPSEs) which involved disinvestment of 5% of the paid-up equity of Government of India (with an option to retain additional 5% in case of oversubscription) in CIL. The total offer size (5%+5%) was totaling 63.16 crores shares. However the total bids received were for a quantity of 67.5 crores across all categories. The oversubscription to the total quantity was around 5%.

The major highlights of the issue are as under:

(i) The CIL disinvestment has attracted the largest FII participation in a Government OFS.

(ii) Out of the total shares offered for sale, 20% were allocated for Retail Investors i.e. those investors who placed bids for shares of total value of not more than Rs. 2.00 lakh. Rs 1852.55 have been received from the retail investors, the largest in any OFS so far.

(iii) Government of India offered 5% discount to Retail investors on price bid to attract more Retail Investors.

(iv) Government fixed Rs. 358/- floor price for the auction of shares which was 4.5% less than the closing price on 29.2.2015.

(v) With this divestment, the Government of India’s share in CIL would come down to 79.65%.

(vi) The total receipts accruing to the Government from the CIL disinvestment are Rs 22557.63/-

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Should The Public Sector Be Privatized?

Privatizing the public sector is definitely not a solution, to the existing problems. Instead what should be done is accountability of the people working in public sector should be increased. And the rules and regulation for carrying on the duties and executing things should be changes as per today’s needs and necessities. You cannot absolutely go on privatizing, each and every sector, and that is not also the solution to all the existing problems.

What is the need of the hour is accountability, of the people working in the public sector, they should feel that they are getting paid by the People, and they are responsible for carrying out their duties, for the welfare of the people. The feeling that they are superior to people, and people who come to them for help or for their services are, inferior or helpless, should be removed from the minds of the employees and officers working in the public sector.

Instead, they should feel that they are the servants of the public, every person working in the Government, for the Government, public sector, is a servant of the public. They may be an officer of a simple clerk, but they are there to render their services to the people. Every single person working in the public sector should be made to feel, that they are getting paid, money of the people, and they are working for the welfare of the people.

Each individual working in the public sector, should answer his own conscience. Is he doing a favor to the public by extending services, or is it his basic responsibility to do so. This sense of responsibility, and accountability, is what needs to be developed among the people working in public sector. If this is achieved there is no necessity for privatization.

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