STOCK MARKET BSE NSE

Decision on NMDC stake sale on Thursday

Published: 25th October 2012 11:14 AM  |   Last Updated: 25th October 2012 11:14 AM   |  A+A-

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. 



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp