Govt to sell stake in HAL, SAIL and RINL

The government will sell 10 per cent shares in state-owned Hindustan Aeronautics Limited (HAL) and Rashtriya Ispat Nigam Limited (RINL) and 5 per cent in Steel Authority of India Limited (SAIL) in the financial year 2014-15, Finance Minister Arun Jaitley said on Friday.

The Cabinet Committee on Economic Affairs (CCEA) has already approved disinvestment in SAIL, RINL and HAL. Disinvestment in these three companies is “tentatively scheduled for completion in 2014-15,” Jaitley said in a reply to a question in the Lok Sabha.

HAL, the Bangalore-based company, manufactures fighter, trainer and small transport planes, helicopters, avionics and hardware for the Armed Forces.

The initial public offering of the fully government-controlled firm will pave the way for its listing on the stock exchange.

RINL, a corporate entity of Visakhapatnam Steel Plant, has made two bids to get listed on the bourses in the UPA-II regime but failed due to choppy market conditions and opposition from trade unions.

For the current fiscal, the government has set a budgetary target of Rs 58,425 crore through disinvestment.

This includes Rs 43,425 crore from selling stake in public sector companies and another Rs 15,000 crore from the sale of residual stake in the erstwhile government companies, including Hindustan Zinc Limited (HZL).

Jaitley said the CCEA has also approved the residual stake sale in HZL and Balco. The government holds 29.5 per cent stake in HZL and 49 per cent in Balco.

The government had sold controlling stake in these companies between 2001-2003.