SAIL, NMDC disinvestment proposal to go to Cabinet in Dec

The proposal to divest government's stake in SAIL and NMDC is final and would be sent to the Union Cabinet next month for approval, Union Steel minister Vir Bhadra Singh said today.     

"The disinvestment proposal for SAIL and NMDC has been finalised and will be put before the Union Cabinet in December for approval," Singh told reporters on the sidelines of Metals Minerals Manufacturing Expo here today.   

The steel ministry has approved the disinvestment proposal, which has also received in-principle approval of the disinvestment department of the finance ministry.     

Asked whether disinvestment in the two Navaratna PSUs would take place in the current financial year, Singh said, "We will try to do something this fiscal." The minister said the follow-on public offer (FPO) in SAIL would be a combination of 10 per cent dilution of the government’s equity and 10 per cent issue of additional shares.

On steel production in the country, Singh said this year total production of steel would be 60 million tonne and the production target for 2011-12 would be 124 million tonne.