Government to sell stakes in 5-6 firms by March

The government will line up stake sale in five to six public sector units by the end of the current fiscal, ie, 31 March 2010, following successful initial public issues by state-run power utilities Rural Electrification Corp, NTPC, National Hydroelectric Power Corporation and oil PSU Oil India Ltd (OIL).

"I am quite hopeful that there will be four-five issues this year, that of REC, NTPC, Satluj Jaal Vidyut Nigam Ltd and NMDC. The toss-off for FPO is between REC and NTPC which, I am hopeful, will be coming through during the next couple of months," S Pradhan, joint secretary in the department of disinvestment of the ministry of finance, said.

"A policy decision will be announced in the next couple of weeks on how best to utilise the money. It is in the offing and we have to wait for the cabinet decision," Pradhan added.

REC and NTPC, which together raised over Rs8,500 crore ($1.8 billion) in initial public offers, could see a follow-on sale, S Pradhan, joint secretary in the department of disinvestment, said on the sidelines of a function to mark OIL's stock market debut today.

The commerce ministry has consented to divestment of a 10 per cent stake in Minerals and Metals Trading Corporation (MMTC) for an estimated Rs17,000 crore ($3.56 billion).

MMTC, the largest importer of gold in the country, brought in 146 tonnes out of the country's total gold import of 600 tonnes in 2008-09.