Govt. Divest Psu Holding As Early As Possible

www.kgandhi.anindia.com The government is considering to divest stake in four PSUs -- NMDC, KIOCL, MOIL and RINL -- administered by the steel ministry, as part of a broader plan to mobilise resources to meet their funding needs. "Internal discussion took place with the finance secretary yesterday with regard to disinvestment. Names of three PSUs (NMDC, KIOCL and MOIL) apart from other entities figured during the meeting," Steel Secretary P K Rastogi told PTI, adding that no decision has been taken yet on selling of government equity. Separately, in a written reply in Lok Sabha today, Minister of State for Steel A Sai Prathap said the ministry has received proposals to divest its equity in steel firm Rashtriya Ispat Nigam (RINL), besides Manganese Ore (India) (MOIL). National Minerals Development Corporation (NMDC), the largest iron ore producer, is a 'Navratna' company. If the government considers divesting up to 10 per cent equity in the company, it will be able to raise over Rs 10,000 crore. The government has targeted raising Rs 1,100 crore from stake sale in PSUs, but said it would retain control of the units. RINL is the largest state-run steel maker after SAIL. It is a 'Mini-Ratna' entity and have applied for the Navratna status giving it more financial leeway. The government is already considering a strategic partnership between NMDC and Kudremukh Iron Ore Company (KIOCL), which a sick entity now.

The Government has identified three public sector units (PSUs) for disinvestments and plans an IPO for its leading fuel company, Oil India. Sources tell Network18 the government will sell its stake in Karnataka-based Kudremukh Iron Ore, Maharashtra-based Manganese Ore and Hyderabad-based National Mining Development Corporation (NMDC).

www.kgandhi.anindia.com Sources says the Government is looking at disinvesting 9 per cent to 20 percent of Kudremukh Ore while 10 percent of Manganese Ore may be sold off via open offer. Sources say between 8 per cent to 20 per cent of NMDC is to be disinvested. The Government is looking at disinvesting about five to 10 companies which have less than 10 percent of their shares traded on the market. The Government also plans to disinvest its stake in PSU firms through Initial Public Offerings (IPO). The IPO for Oil India will open on September 7 and will close on September 11. Oil India, the country's second largest state run explorer, will offer 2.64 crore equity shares through IPO and will use the money raised to fund its Rs 2,400 crore capital expenditure plan. Simultaneously, the Government will sell 10 percent of its stake to Oil India. Post the IPO, the Government’ stakes will fall to 78.5 per cent from 98.13 per cent currently.

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