International BusinessGovt mulling stake sale in four PSU firms
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.
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"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.