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Govt to complete NALCO pie sale in 6 mths

Divestment Minister Arun Shourie said on Thursday the government would complete the domestic and overseas float of shares of state-run aluminium producer National Aluminium Company in six months.

The time-frame for the share sale in NACLO, the country's second largest aluminium producer, was set at a meeting of the Cabinet Committee on Divestment, Shourie told a news conference.

The government, which holds an 87.15 per cent stake in NALCO, plans to reduce its holding to 26 per cent by first selling 10 per cent through a domestic issue and then 20 per cent through the issue of American Depositary Receipts.

This would be followed by the sale of slightly over 29 per cent to a strategic partner after reserving two per cent for employees.

India has stepped up its privatisation drive in recent months after it sold controlling stakes in VSNL, IBP, IPCL and Maruti Udyog Limited.

The government plans to raise Rs 120 billion through stake sales in the current financial year which began in April and Shourie has said the government hopes to exceed the target.

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