JOIN USThe Cabinet Committee on Economic Affairs (CCEA) on Thursday approved the sale of 10 per cent stake in India’s largest iron ore miner NMDC, paving the way for the first public sector company to go under the hammer this fiscal year.
The share sale is expected to bring Rs 7,000 crore to the exchequer and help bridge the fiscal deficit.
The government currently holds 90 per cent stake in the Navratna company.
The CCEA has cleared sale of about 39 crore equity of NMDC of face value of Rs 1 each through the Offer for Sale (OFS) route, an official release said.
Thursday’s closing price of NMDC share was Rs 184.25 on the National Stock Exchange. On the Bombay Stock Exchange the price was Rs 184.40 per share.
Along with NMDC, four other public sector undertakings-- RINL, NTPC, Power Grid Corporation and Engineers India, will also go under the hammer.
The government in planning to mop up Rs 30,000 crore this fiscal by sellting stakes in PSUs. But even after passage of seven months this fiscal, the government has not started the divestment process.
Last fiscal, owing to volatile market conditions, the government had to postpone its selloff plans and could only divest stake in Power Finance Corporation (PFC), Oil and Natural Gas Corporation (ONGC) and National Buildings Construction Corporation (NBCC).
As against the disinvestment target of Rs 40,000 crore in 2011-12, the government could raise only Rs 14,000 crore through PSU stake sale.