IPO of Coal India Limited

Coal India limited is the world’s largest Coal miner with revenue exceeding $10.3 billion US. It was formerly owned entirely by the Government of India, under the administrative control of the Ministry of Coal. It is involved in coal mining and production industry.  GoI is now divesting 10 percent of its equity through the public issue of shares. Experts were quite optimistic about the success of the IPO; CARE( Credit Rating and Analysis graded the IPO with 5 out of 5 and the same was reflected in the results when the CIL IPO got subscribed more than 15 times after huge response from investors.

What is the reason for the huge success of CIL IPO and why it is called mother of all IPOs? CIL contributes to around 82% of coal production in India. The balance 18% is

produced mainly for captive consumption by manufacturing/power companies. Thus

practically, CIL holds the monopoly in traded coal available domestically.

It has a highly favorable demand supply situation in the domestic coal industry.

Also CILs strong financial position gives it immense financial flexibility to fund its on-going and planned expansion projects. Moreover, CIL is one of the lowest cost producers giving it a pricing edge over imported coal. The grading also factors experienced management and impressive track record of operations. It can be foreseen that the demand for the domestic coal industry will be mainly driven by the power generation companies. Increasing domestic steel and cement capacities are also likely to further support the domestic coal demand. Hence the off take related risks for CIL

are negligible.

Moreover there are certain other factors that make its IPO a hit. The company is responsible for the entire coal mining sector and it operates along with a number of subsidiaries. The company has an experienced senior management team with many of the members serving the company or its subsidiaries for more than 30 years. The company has a sound corporate governance system, in place. It is practically a debt free company and has healthy profit margins.

However, the prices of coal, being a commodity, are volatile in nature. Hence the profit margins too are volatile for the company. Nevertheless, on account of low operating cost and strong reserves built by the company, the financial soundness is high. Further the shift of the company to a more market linked pricing mechanism is expected to improve its profitability.

It facilitates continuous labor productivity due to the use of technology, and high share of production from open cast mines. Deregulated coal pricing regime gives them the power to price their coal along with other factors like favorable demand – supply, and cost competitiveness.

However, CIL’s operations are affected to some extent by socio-enviromental concerns.

Changes in pricing regulations, delays in obtaining clearances from the forest department

and delay in receipt of regulatory approvals continue to pose a threat to the company’s

operations. An Investors ethical dilemma is whether to support a carbon pumping system or to safeguard more climate friendly energy suppliers. While such boundaries of investment cannot be fixed still it’s a debatable issue.

How empowerment of women must be legally enforced

Empowerment refers to enhancement of capabilities of a group or individual in social, economical, political and spiritual spheres so as to develop their decision making ability (in individual or collective context), ability to form a positive self image by overcoming stigma and the ability to have a discreet thinking about what is wrong or right. Women in our society have been marginalized for a long time due to many reasons as cultural dogmas, religious construct, male dominancy and discrimination. The primary reason is the entrenchment of negative learning over a long period of time. Also such behavior is reinforced when no administrative body disapproves of it.

The solution lies in the creation of an environment through positive economic and social policies for full development of women to enable them to realize their full potential. This can be done by first framing laws through our democratic structure; second, by outlining an action plan and third the establishment for a strong feedback mechanism which ensures if empowerment measures in India are comparable to global standards and measure the discrepancy.

At the initiative of and with the full participation of all stakeholders including community and religious leaders, laws can be made with the aim to encourage changes in personal laws such as those related to marriage, divorce, maintenance and guardianship so as to eliminate discrimination against women. The evolution of property rights in a patriarchal system has contributed to the subordinate status of women. Women’s equality in power sharing and active participation in decision making, including decision making in political process at all levels will be ensured for the achievement of the goals of empowerment. Laws can be made to introduce positive discrimination to ensure participation of women at every level, including the legislative, executive, judicial, corporate, statutory bodies, as also the advisory Commissions, Committees, Boards, and Trusts etc. Women–friendly personnel policies will also be drawn up to encourage women to participate effectively in the developmental process. This includes more safety for night shift workers in textile mills and strict laws to counter women harassment at work places.
In order to enhance women’s access to credit for consumption and production, the establishment of new and strengthening of existing micro-credit mechanisms and micro-finance institution can be undertaken so that the outreach of credit is enhanced. In view of the critical role of women in the agriculture and allied sectors, as producers, concentrated efforts can be made to ensure that benefits of training, extension and various programmes will reach them in proportion to their numbers. Special measures can be taken to eliminate discrimination, universalize education, eradicate illiteracy, create a gender-sensitive educational system, increase enrolment and retention rates of girls and improve the quality of education to facilitate life-long learning as well as development of occupation/vocation/technical skills by women. Reducing the gender gap in secondary and higher education should be a focus area. Gender sensitive curricula should be developed at all levels of educational system in order to address sex stereotyping as one of the causes of gender discrimination.
Media can be used to portray images consistent with human dignity of girls and women. Efforts should be made to regulate media, specifically to remove demeaning, degrading and negative conventional stereotypical images of women and violence against women. The media would be encouraged to develop codes of conduct, professional guidelines and other self regulatory mechanisms to remove gender stereotypes and promote balanced portrayal.
While institutions at the district level can be strengthened, at the grass-roots, women will be helped by Government through its programmes to organize and strengthen into Self-Help Groups (SHGs) at the Anganwadi/Village/Town level. These societies will bring about synergistic implementation of all the social and economic development programmes by drawing resources made available through Government and Non-Government channels, including banks and financial institutions and by establishing a close Interface with the Panchayats/ Municipalities.
Implementation of international obligations/commitments in all sectors on empowerment of women such as the Convention on All Forms of Discrimination Against Women (CEDAW), Convention on the Rights of the Child (CRC), International Conference on Population and Development (ICPD) and other such instruments will help to make reforms more accountable. International, regional and sub-regional cooperation towards the empowerment of women should be encouraged through sharing of experiences, exchange of ideas and technology, networking with institutions and organizations and through bilateral and multi-lateral partnerships.

The Final Push

Hang on there dude, this is what you were waiting for, this is the moment of the ultimate truth. This is the time to realize the goal what you have been persevering. As rightly said- the higher the goal, greater is the sacrifice.
You have been practically putting every thing on stake for this thing to happen. Now you are closer to that dream. Show the character of Ram, remember that stoic smile on his face. Just be that and i know you will be there.
Dharma and Karma both coincides at the point which your utmost fidelity stays. The point where body meets soul can only be something higher, much higher that what is perceived to be real.
This is time to stay-put and everything must be on the road ahead.
'Be fearless and believe in the self'.

"Talking Bird"

Oh, my talking bird
Though you know so few words
They're on infinite repeat
Like your brain can't keep up with your beak.

And you're kept in an open cage
So you're free to leave or stay.
Sometimes you get confused
Like there's a hint I am trying to give you.

The longer you think, the less you know what to do.

It's hard to see your way out
When you live in a house in a house
Cause you don't realize
That the windows were open the whole time.

Oh, my talking bird
Though your feathers are tattered and furled
I'll love you all your days
Till the breath leaves your delicate face.

It's all here for you as long as your choose to stay.
It's all here for you as long as you don't fly away.

"The New Year"

So this is the new year.
And i don't feel any different.
The clanking of crystal
Explosions off in the distance (in the distance).

So this is the new year
And I have no resolutions
For self assigned penance
For problems with easy solutions

So everybody put your best suit or dress on
Let's make believe that we are wealthy for just this once
Lighting firecrackers off on the front lawn
As thirty dialogs bleed into one

I wish the world was flat like the old days
Then i could travel just by folding a map
No more airplanes, or speed trains, or freeways
There'd be no distance that could hold us back.


So this is the new year [x4]