New Delhi: The Government in the Cabinet meeting on Thursday announced their intentions to disinvest or sell off 10 per cent each of non-Navratna Public sectors National Aluminium Company (NALCO) and Neyveli Lignite Corporation Ltd.
The disinvestments would take place in the next five to six months.
The Government hopes to raise over Rs 2,600 crore from this stake sale, which will be done through the public issue route.
Announcing the decision, the Finance Minister said that 75 per cent of returns from the proceeds will go to social sector development and the remaining 25 per cent of the returns will be used for reviving sick public sector units.
The disinvestments will reduce the Government holding in Nalco to 77.15 per cent and in Neyveli Lignite to 83.56 per cent, said Chidambaram.
The disinvestment in the two companies will be done through the book building process at an appropriate time on the basis of the recommendations of the lead managers and the market prices prevailing then, he said.
On Mines Minister Sis Ram Ola's reported statement that the money earned through the disinvestment of NALCO should be ploughed back into the company, Chidambaram said Ola was present at the CCEA meeting when the decision was taken.
The Finance Minister said the disinvestment was a conscious decision arrived at through a consensus with the Left parties over a nine-month period.
It was based on the commitment in the National Common Minimum Programme to divest a small portion of the Government equity in non-Navratna PSUs that would go towards building the National Investment Fund.
(With agency inputs)
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