NEW DELHI, JANUARY 4 Despite the Left’s objections, the UPA government is moving ahead with its plans to disinvest its shares in two profit-making public sector undertakings—National Mineral Development Corp and Neyveli Lignite Corp.

Yesterday, it sent out proposals for the Cabinet Committee on Economic Affairs to offload minority shares in both PSUs.

The proposal is to sell 15% of government shares in the country’s largest iron-ore producer NMDC and 10% in lignite producer and power generator NLC. The government currently holds 98.38% in NMDC and 93.56% in NLC.

The modus operandi, in the case of NLC, is a straight sale of 156.96 crore shares of Rs 10 each through book-building process.

However, in the case of NMDC, the PSU would first issue bonus shares to extinguish its surplus reserve, followed by a stock split to douse the high share price and attract small investors. Shares of NMDC—which has been consistently posting profits—are currently traded at Rs 1,086 a share.

These steps would be decided by the Finance Ministry in consultation with the administrative Steel Ministry after the CCEA approval.

The intention in both share sales is to provide funding to the National Investment Fund. The proposals promise to retain the government majority of 51 per cent in both PSUs.

The NIF is to be managed by public sector mutual funds with a third reinvested in ailing PSUs and the remainder used for social sector. The government’s decision comes in the face of the Left’s stiff opposition on the issue.