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Cabinet likely to give nod to selling 10% stake in NMDC

The Union Cabinet is likely to give green signal on Thursday to 10 per cent stake sale in the iron ore mining major NMDC that could fetch the government over Rs 7,000 crore.

‘The Cabinet Committee on Economic Affairs (CCEA) will discuss the proposal to offload 10 per cent government stake in NMDC’, sources said.

The government holds 90 per cent stake in the country’s top iron ore producer. It had in March 2010 offloaded its 8.38 per cent holding of then 98.38 per cent stake in the company through a follow-on public offer (FPO).

NMDC has an annual capacity of 30 million tonnes. It had reported about six per cent rise in net profit at Rs 1,906 crore for the first quarter ended 30 June.

Although the government had earlier proposed stake sale in NMDC, it postponed the decision because of poor market conditions.

The government plans to raise Rs 30,000 crore from disinvestment during the current financial year.
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