Cabinet approves 10% stake sale in NMDC

The government on Thursday decided to offload 10 per cent stake in mining company NMDC, which may help mobilise more than 7,000 crore.

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister approved the steel ministry's proposal of divesting 10 per cent of the total 90 per cent official stake in the company through 'Offer for Sale (OFS) method.

The finance ministry is keen to generate revenues worth around Rs 30,000 crore this fiscal through stake sales in profit-making PSUs with the objective of reining in the fiscal deficit.

The Cabinet's decision implies that about 39 crore equity of NMDC would be sold at face value of Rs 1 each. As of March 31 this year, the paid up equity capital of the company is Rs 396.47 crore of which the Centre holds 90 per cent.

The Cabinet on Thursday also cleared the National Policy on Electronics 2012, which aims to make the domestic electronic hardware manufacturing sector into a $400-billion industry by the year 2020.

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