NEW DELHI (Commodity Online): The steel ministry has been asked to give by November 5 its views on the proposed 15% disinvestment in mining Indian PSU NMDC, which could fetch the government over Rs 18,000 crore.

The department of disinvestment has recommended 15% disinvestment in NMDC and sought the steel ministry’s response on it by November 5. If the steel ministry does not respond by then, it will be construed that they approve of disinvestment department’s recommendation.

At present, the steel ministry is studying the proposal sent by the disinvestment department and will forward its suggestions, if any, before the stipulated time, he added.

Going by NMDC’s current share price, the government could raise around Rs 18,000 crore through disinvestment, which may well be the largest stake sale this fiscal, in terms of revenue to the exchequer, and would aid in financing partly its social sector programmes.

In August, the steel ministry had sent its proposal to sell 8.38% of government equity in the country’s largest iron ore miner, which has a market cap of about Rs 118,000 crore on the basis of Friday’s closing.

With the disinvestment department recommending 15% stake sale in NMDC, the government’s equity in the company is set to fall from 98.38% to 83.38%. Currently, institutional investors hold 1.62% stake in the firm.

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