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| Steel min sticks to 10% disinvestment in NMDC |
| Press Trust of India / New Delhi Nov 09, 2009, 18:45 IST |
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The Steel Ministry today said it will stick to its earlier proposal of divesting up to 10 per cent of the government's equity in iron ore miner NMDC even as the finance ministry has proposed 15 per cent sale of Centre's holding in the navratna company.
"We have reacted to the final proposal (from the Department of Disinvestment under the Finance Ministry). We have sent a proposal. We are sticking to the earlier (proposal of) 10 per cent disinvestment," Steel Secretary Atul Chaturvedi told PTI.
Going by NMDC's current share price, the government could raise around Rs 13,000 crore through disinvestment, Chaturvedi said.
Last month, the Disinvestment Department had proposed 15 per cent stake-sale in NMDC.
"It will be a Cabinet decision and actual modalities will be finalised by the Department of Disinvestment," he added.
A note on disinvestment in NMDC, along with steel maker SAIL is expected to reach the Cabinet Committee on Economic Affairs by middle-December, Chaturvedi added.
When asked if the PSU will come out with the public offer along with the proposed disinvestment, NMDC Chairman Rana Som told PTI, "So far follow-on offer is concerned, it would not take place now because the company would need funds for investment only later."
Shares of the firm, which has market capitalisation of 1.34 lakh crore, closed 6.81 per cent up to Rs 361.45 on the BSE today.
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