According
to senior government officials, the aim is to complete the process by
the close of the current financial year (March 31, 2010).

"NTPC
is expected to file its draft red herring prospectus (DRHP) in the
coming week. Other PSUs will also follow suit and preliminary work
shall be completed in the month of February," Secretary Disinvestment
Sunil Mitra said on Saturday. NMDC has already filed the DRHP with the
Securities Exchange Board of India.

The government plans to
offload 8.38 per cent stake in NMDC, which may rake in as much as Rs
12,000 crore. "A floor price will be determined for retail and high net
worth individual investors. There will be an auction for institutional
investors under the Qualified Institutional Placement route," he said.

In
the case of NTPC, the government plans to offload 5 per cent of its
89.5 per cent holding, which is estimated to rake in as much as Rs
5,000 crore for the government. The government also plans to divest
five per cent in REC and 10 per cent in SJVNL, which is a joint venture
between the Centre and the state government of Himachal Pradesh.

The
government may raise as much as Rs 3,500 crore from REC's divestment
and Rs 560 crore from SJVNL by bringing its stake down to 65 per cent
in the latter.

This could take the total to about Rs 19,000
crore from these four PSUs alone. The money would take the total
divestment proceeds to Rs 40,000 crore in 2009-2010. The funds would be
placed in the National Investment Fund and the government is in a
position to dip into these reserves till 2012, according to a Cabinet
decision taken last year.

Source: Indian Express

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