MoD clears 10 per cent stake sale in HAL
13 Sep 2011
New Delhi: The ministry of defence (MoD) has approved a proposal to offload as much as 10 per cent in state-owned Hindustan Aeronautics Ltd (HAL). According to defence ministry sources, the stake is likely to be sold in phases over a 10-year period.
MoD officials were at pains to clarify that this is an in-principle approval and that necessary approvals from the finance ministry and other modalities still need to be worked out.
The approval was granted by the MoD at a Defence Acquisition Council meeting last week, media sources reported Monday, citing defence ministry officials.
Once the finance ministry clears the proposal, MoD will approach the cabinet committee on economic affairs (CCEA) for final approval.
Officials also declined to comment on the valuation of the company. There is no word on the development from HAL.
Founded in 1964, Bangalore-based HAL is one of Asia's largest aerospace and defence entity which designs, manufactures and assembles various defence aircraft.