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CGD clears divestment of MOIL

Core Group of Secretaries on Divestment has cleared the divestment of Manganese Ore India.

At a recent meeting the CGD approved sale of government equity overruling steel ministry's objections to the proposed sale, sources said.

However, Divestment Department officials declined to comment on the issue.

The department would now proceed to finalise a cabinet note on the issue spelling out the modalities of the proposed divestment exercise.

Earlier, steel ministry had opposed divestment of government equity arguing that economic conditions were not favourable for the sale.

The CGD is reported to have given in-principle clearance to the proposed sale leaving aside the reservations of the steel ministry to be dealt with at the time of the sale.

Divestment Department is learnt to be in agreement with the Divestment Commission's recommendations on offloading majority stake in the company.

It had recommended sale of 51 per cent stake in favour of strategic partner.

The commission felt continuance of MOIL in the public sector domain would neither be essential for conservation of manganese ore nor vital for maintaining the domestic price of ferro manganese.

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