Millennium Post

Govt approves stake sale in four public sector firms

Giving a push to its ambitious disinvestment programme, the Indian 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 per cent stake in Oil India Ltd and another 9.59 per cent disinvestment in Hindustan Copper Ltd [HCL], an official statement said.

Further, the CCEA also cleared the proposal of 12.15 per cent stake sale of Nalco and 9.33 per cent in MMTC through Offer for Sale [OFS] route. The government currently holds 78.43 per cent stake in Oil India. ‘After this disinvestment, the government’s shareholding in the company would come down to 68.43 per cent,’ 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 per cent, from 99.59 per cent 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 per cent, from 87.15 per cent at present. The equity capital of the company stands at Rs 1,289 crore.


Odisha chief minister Naveen Patnaik said on Friday that there is no reason for disinvestment of Nalco, which is a profit-making Navratna company. 'Nalco is doing well and making huge profit. There is no reason for its disinvestment,' Patnaik told reporters after the union cabinet approved sale of minority stakes of four public sector firms, including Nalco. Though several earlier attempts for disinvestment of Nalco have failed due to steep opposition in the state, this was for the first time that the Cabinet Committee on Economic Affairs (CCEA) allowed 12.15 per cent disinvestment of Nalco. Other CPSUs which would be disinvested are Hindustan Copper, Oil India and MMTC. While the Centre holds 87.15 per cent stake in Nalco, 55,286 shareholders, including banks, financial institutions and individuals hold the rest.
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