In what may well be the biggest disinvestment of the year, the government is on course to offload 15 per cent stake in state-owned mineral exploration behemoth National Mineral Development Corporation (NMDC). It will enrich the exchequer by at least Rs 18,000 crore given the Navratna’s stock price today. NMDC, which traded at Rs 317 a share on the Bombay Stock Exchange today, has a market capitalisation of Rs 1,26,000 crore.

Government officials told The Indian Express the proposal will be placed before the Cabinet in the first week of November. The government currently holds 98.38 per cent stake in the company with the balance being held by mutual funds, insurance companies and corporate bodies.

While the government has already cleared a 5 per cent stake sale in NTPC and another 10 per cent disinvestment in Satluj Jal Vidyut Nigam Ltd, the Cabinet Committee on Economic Affairs will consider tomorrow a proposal to sell 10 per cent in Rural Electrification Corporation. The REC sell-off will help the government realise Rs 2,700 crore. Disinvestment in Engineers India Ltd, an engineering consulting firm, is also likely this year.

NMDC, engaged in the exploration of minerals, posted net profits of Rs 4,372 crore on net sales of Rs 7,564 crore in 2008-09. It is India’s largest iron ore producer and exporter and owns a mechanised diamond mine in Panna.