The Hindu Business Line : Govt rejects Coke plea again but grants it a month's grace

COCA-COLA India's application seeking a waiver of the mandatory disinvestment of up to 49 per cent in its Indian operations to domestic public shareholders has been rejected again, and instead a one-month extension has been offered to the company.

The renewed plea seeking exemption for the disinvestment was rejected by the Government in May this year, which was the second time the company's proposal seeking a waiver had been rejected. The Government had rejected a similar application filed by the company on October 3, 2001, on the grounds that entry-level conditions would not be waived.

The deadline for divestment of a 49-per cent stake in the US-based soft drink major's Indian operations is now August 17. According to Government sources, Coca-Cola India could once again approach the Industry Ministry before the August 17 deadline for a review.

While confirming that an official communication had been received by the Government on this, Coca-Cola India's spokesperson declined to elaborate further on the subject. The Government had given the company the option to divest its equity through the private placement route, in case it wanted to opt out of the IPO.

Coke had sought either deletion of the mandatory disinvestment clause or extension of five years for the IPO as the company's accumulated losses were estimated at over Rs 2,000 crore. The application was filed by Hindustan Coca-Cola India Pvt Ltd, a wholly-owned subsidiary of Coca-Cola India.

Send this article to Friends by E-Mail

Stories in this Section
Jet Airways says `everyone can fly'

Disinvestment panel clears sale of five ITDC hotels

Govt rejects Coke plea again but grants it a month's grace

SBI cuts housing loan rates

Cruising high seas with tinsel stars

New Bill to be tougher on dishonour of cheques

BNP Paribas to wield axe