Government lines up 4 PSUs for divestment

The government has lined up four public sector undertakings, including MMTC, Oil India Ltd, Nalco and Hindustan Copper, to raise around Rs15,000 crore through partial divestment of its stakes.

The Cabinet Committee on Economic Affairs (CCEA) at its meeting today approved the sale of 9.33 per cent paid-up equity of MMTC, 10 per cent paid-up equity of Oil India Ltd, 12.15 per cent paid-up capital of National Aluminium Company Limited (NALCO) and divestment of 9.59 per cent equity of Hindustan Copper Limited (HCL).

The CCEA, headed by Prime Minister Manmohan Singh, however, did not take any decision on the sale of stake in Neyveli Lignite Corporation and the proposed initial public offer (IPO) of RITES Ltd, which were also on the agenda of the meeting.

The government will sell 9.33 per cent of the paid-up equity capital of MMTC Ltd out of the government's holding of 99.33 per cent through an offer for sale of shares through stock exchanges, as per SEBI rules and regulations, an official release said today.

Post divestment, government's shareholding in the company would come down to 90 per cent.

MMTC, India's largest international trading company and a listed `Mini Ratna' central public sector undertaking, had a paid-up equity capital of Rs100 crore as of 31 March 2012. It is currently not compliant with the Securities Contract (Regulation) Rules, 1957 (SCRR), which stipulate a minimum level of 10 per cent public holding as a listed CPSE.