SAIL, NMDC divestment to fetch government Rs 30,000 cr
The government said it will raise around Rs 30,000 crore through the disinvestment of stakes in navratna public sector undertakings Steel Authority of India Ltd (SAIL) and National Mineral Development Corporation. HT Correspondent reports.business Updated: Nov 16, 2009 21:11 IST
The government on Monday said it will raise around Rs 30,000 crore through the disinvestment of stakes in navratna public sector undertakings Steel Authority of India Ltd (SAIL) and National Mineral Development Corporation (NMDC).
Steel minister Virbhadra Singh said that the divestment proposals would be put before the cabinet for approval by the end of December and the sale process should be completed by the end of this fiscal.
SAIL's 20 per cent and NMDC's 8.33 per cent divestment has already received an in principle nod from the disinvestment department of the finance ministry in view of the government's overall philosophy to increase the public holding of PSU's to atleast 10 per cent. While SAIL's 5 per cent direct disinvestment of government stake in the first phase would raise around Rs 8,000 crore, NMDC's disinvestment will add Rs 14,000 crore to the national exchequer. Another Rs 8,000 crore would be raised by fresh issue of shares by SAIL to the tune of 5 per cent.
"The proposal for disinvestment of the two PSUs would be finalised by the end of December and we are targeting the process to be completed by the end of March," Singh said.
The present government holding in NMDC is 98.38 per cent and in SAIL 85.82 per cent.