As the government and its Left party supporters battle over BHEL disinvestment plans, the Rajya Sabha was on Tuesday told that a decision to sell 10 per cent of its shareholding in the company through a public offer has been taken.
"The government has decided on an 'offer for sale' of 10 per cent equity of BHEL out of the government holding of 67.72 per cent through book building process," Finance Minister P Chidambaram said in a written reply to the Rajya Sabha.
Up to 15 per cent of the equity offered for sale would be reserved for the employees of BHEL, he said. "Allocation of shares to retail investors would be in accordance with norms stipulated by Securities and Exchange Board of India." He, however, did not say when the public offer would be made.
Left parties, which support the Government from outside, have opposed any disinvestment of government equity in BHEL.
Chidambaram said the amount that would be raised through disinvestment in BHEL would depend upon the market conditions at the actual time of the sale.
"The proceeds would go into the National Investment Fund, the income from which would be deployed to finance selected social sector schemes and for capital investment in selected profitable and revivable public sector enterprises," he said.
