CCD to clear path for EIL divestment

NEW DELHI: The CCD meeting slated for Friday is likely to remove all roadblocks before disinvestment in EIL.
While it is expected to overrule the objections from the urban development ministry’s demand for a fresh permission from the DDA for the land housing the company, it will extend the facility of purchase preference to EIL for two years.
The CCD meeting is also expected to give “in principle� approval for the proposal for payment of special dividend of Rs 309 crore out of the Rs 546 crore reserves by the EIL. This would mean that EIL would have to pay special dividend at Rs 55 per share. The Centre has decided to sell off 51% of its 90% holding in the company though strategic sale. Another 10% would be divested to employees.
The process of EIL divestment was delayed as the urban development ministry demand for a compensation for the land provided for EIL. Not agreeing to this view, the ministry of disinvestment approached the cabinet citing the examples of Balco wherein the Supreme Court has viewed the change of ownership in the company would not imply change of ownership of land.