Divestment in SAIL, NMDC to fetch Rs 320 bn: Govt

The government is likely to raise around Rs 32,000 crore (Rs 320 billion) from disinvestment in NMDC and Steel Authority of India Ltd.

Steel secretary Atul Chaturvedi said on Sunday about Rs 13,000 crore (Rs 130 billion) would be raised from NMDC's stake sale, while SAIL would fetch Rs 19,000 crore (Rs 190 billion). He was addressing the media on the sidelines of the 47th National Metallurgists' Day celebration of the Indian Institute of Metals.

Steel minister Virbhadra Singh said the disinvestment proposals would be placed before the Cabinet by December.

The department of disinvestment has given an in-principle approval for a 10 per cent public offer in case of SAIL, as well as disinvestment of an equivalent size in two tranches.

The government is of the view that public holding in listed companies should be at least 10 per cent. In tandem with this, the steel ministry has approved the sale of 8.38 per cent government equity in NMDC.

Singh said both the cases were being pursued simultaneously and the targets would hopefully be achieved in the current financial year.

The Centre had unveiled its disinvestment programme on Sunday. There were at least 60 central PSUs that were making profits but were unlisted and ten that were listed but had less than 10 per cent mandatory public holding.

Steel production up

Steel minister Virbhadra Singh said the country's steel production at the end of the year would be 60 million tonnes, compared to 57 million tonnes last year.

However, the demand had risen around 7 per cent, while production rose 4-5 per cent. The ministry has set a target of producing 124 million tonnes by 2011-12.

Singh said brownfield projects in the sector were on schedule, but greenfield ones were being delayed due to issues related to land and mining rights.

"There have been delays, but the government is acting as a facilitator and discussing with the respective state governments," he said.