Cabinet allows disinvestment in 4 PSUs; to raise Rs 15,000 crore
The government on Friday approved sale of its minority stakes in four public sector firms -- Hindustan Copper, Oil India, MMTC and Nalco-- to raise up to Rs 15,000 crore.
New Delhi: Giving a push to its ambitious disinvestment programme, the government on Friday decided to sell its stake in four PSUs -- Hindustan Copper, Oil India, MMTC and Nalco -- which may fetch around Rs 15,000 crore.
The government, however, did not take any decision with regard to stake sale in Neyveli Lignite and initial public offering (IPO) of RITES LTD, which were also on the agenda of the meeting of Cabinet Committee on Economic Affairs (CCEA).
The government has approved the proposal to sell 10 percent stake in Oil India Ltd and another 9.59 percent disinvestment in Hindustan Copper Ltd (HCL), an official statement said.
Further, the CCEA also cleared the proposal of 12.15 percent stake sale of Nalco and 9.33 percent in MMTC through Offer for Sale (OFS) route.
The government currently holds 78.43 percent stake in Oil India. "After this disinvestment, the government's shareholding in the company would come down to 68.43 percent," the statement added. The paid-up capital of the company as on March 2012 stood at Rs 601 crore.
Further, post disinvestment government stake in HCL would come down to 90 percent, from 99.59 percent at present. The company's paid up capital stands at Rs 463 crore.
As far as the stake sale in NALCO is concerned, it would bring down the government equity in the company to 75 percent, from 87.15 percent at present. The equity capital of the company stands at Rs 1,289 crore.
As regards commodity trading firm MMTC, the stake sale would bring down government shareholding to 90 percent, from 99.33 percent. It's paid up capital stands at Rs 100 crore.
However, the 5 percent stake sale of Neyveli Lignite and another 10 percent IPO of RITES was not taken up by the CCEA.