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HindustanTimes Wed,03 Sep 2014

Disinvestment in five PSUs cleared

IANS  New Delhi, September 14, 2012
First Published: 19:05 IST(14/9/2012) | Last Updated: 19:10 IST(14/9/2012)

The government on Friday decided to disinvest in five public sector undertakings to raise around Rs. 15,000 crore.

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The cabinet committee on economic affairs (CCEA) approved 10% stake sale in Oil India and another 9.59% in Hindustan Copper.

It also approved a 12.15% stake sale in NALCO through the Offer for Sale (OFS) route.

The CCEA also approved 10% fresh equity sale in an initial public offering (IPO) in the Rail India Technical and Economical Services (RITES) which comes under the railway ministry.

In addition, the proposal of disinvesting 9.33% in resources canalising agency, MMTC, was cleared by CCEA.

A proposal of a 5% stake sale in Neyveli Lignite Corporation, however, was not taken up. Sources said this was due to strong opposition from Tamil Nadu.

The government had earlier spoken of a target of Rs. 30,000 crore from disinvestment in the current fiscal.

Raising funds from disinvestment was a pending measure in order to check a fiscal deficit that has been widening following rising food, fuel and fertiliser subsidies.

The government, in the last fiscal, had raised only Rs. 14,000 crore from disinvestment against the target of Rs. 40,000 crore.


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