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Govt identifies 3 PSUs for disinvestment
Published on Thu, Jul 16, 2009 at 18:11  |  Updated at Fri, Jul 17, 2009 at 15:40  |  Source : CNBC-TV18
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The Government of India has identified three public sector undertaking (PSU) companies for disinvestment. It will divest stake in Kudremukh Iron Ore, Manganese Ore and NMDC. Kudremukh is a listed entity with 1% market float, Manganese Ore is an unlisted company owned by the government of India, Maharashtra and Madhya Pradesh state governemnts; NMDC is listed with 1.62% market float.

It is believed that between 9% and 20% of Kudremukh may be divested, which could raise between Rs 771 crore and Rs 1,713 crore, while 10% of Manganese Ore may be sold via offer for sale — it may fetch Rs 108 crore. NMDC may see a divestment of 8.38%–20% and that may fetch between Rs 10,351–Rs 24,704 crore.


The Finance Secretary held a meeting earlier this week to discuss the issue. CNBC-TV18 has learnt that five to 10 companies will be divested this fiscal and that companies with less than 10% market float will be the main candidates for disinvestment.

Here is a transcript of CNBC-TV18’s Siddharth Zarabi’s analysis of the issue. Watch video for the complete analysis.

This means that the disinvestment target — a soft one of Rs 25,000 crore for this fiscal — may be met through these three companies alone. However, these are just proposals that have been drawn up and various options are being considered. Once it is finalised, it will go to the cabinet for approval after which the formal process of a sale will begin.

Also read: Govt to disinvest 5-10 PSUs in FY10: Sources
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Tags: PSUs, disinvestment, Kudremukh Iron Ore, Manganese Ore, NMDC, Siddharth Zarabi
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