Decision on NMDC stake sale on Thursday - The New Indian Express

Decision on NMDC stake sale on Thursday

Published: 25th October 2012 11:14 AM

Last Updated: 25th October 2012 11:14 AM

The Union Cabinet is likely to take up the proposal of 10 per cent stake sale in iron ore mining major NMDC on Thursday and is also expected to discuss the National Policy on Electronics.

According to government officials, the Cabinet Committee on Economic Affairs (CCEA) will discuss the proposal to disinvest government’s 10 per cent stake in NMDC either through the follow-on public offer or offer-for-sale route.

Currently, the government holds 90 per cent stake in the Hyderabad-based iron ore producer. The last time government had offloaded its stake in NMDC was in March 2010 when it had sold 8.38 per cent through a FPO.

NMDC has an annual capacity of 30 million tonnes. For the first quarter ended June 30, the company had reported a six per cent on year rise in net profit at `1,906 crore. At current market prices, a 10 per cent stake sale could fetch the government nearly `7,000 crore.

Another major policy initiative expected to top the Cabinet’s agenda relates to National Policy on Electronics. The $400 billion domestic electronics industry can create employment for 28 million people. According to a proposal, telecom products specifically mobile phones will be declared goods of special importance under the Central Sales Tax Act. 

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