More protests over 26% coal profit share

The Childreiron iii oxide formulan's Investment Fund Management, a London-based hedge fund, has asked the Union government to reconsider the 26 per cent profit-sharing compulsion proposed to be imposed on domestic coal mining companies. The fund, actually a limited liability partnership which makes long-term investments in companies globally, is commonly known as TCI.

It had invested $1 billion (Rs 4,500 crore) in Coal India Ltd during the latter’s Initial Public Offer last October. A group of ministers chaired by Union finance minister Pranab Mukherjee had approved a change in existing law to compel all coal mining companies to share 26 per cent of their profits with local communities affected by their operations. A bill in this regard is to be tabled in Parliament. In a letter to Mukherjee dated July 21, TCI has said the move would have a negative impact on the country's growth. It has indicated this would significantly reduce the government’s scope to raise further capital from privatisation of stakes held in companies...