Nalco board to take a view on divestment soon

State-owned aluminium producer Nalco's board will soon consider a 10 per cent disinvestment proposal that may raise around Rs 2,000 crore (Rs 20 billion) for the government.

"The department of disinvestment had recently written to us to consider 10 per cent disinvestment in Nalco. We have forwarded the proposal to Nalco. Now Nalco board will soon take a view on Disinvestment," mines secretary Santha Sheila Nair told reporters in New Delhi.

The government at present holds 87.15 per cent stake in the navratna firm.

Earlier this month, mines minister B K Handique said the ministry of finance had evinced interest in selling 10 per cent stake in the firm, but the administrative ministry was yet to take a view on it.

The Nalco counter was trading at Rs 409 a share, down 0.01 per cent from the previous close on the Bombay Stock Exchange.

If the government divests 10 per cent stake in Nalco, at the current share price over Rs 2,000 crore (Rs 20 billion) can be raised.

However, the final amount will depend on the issue price of the FPO.

Nalco may not raise any fresh equity along with the proposed stake sale, its CMD A K Srivastava said last month.

The ministry of mines is currently considering a further public offer in ailing PSU Hindustan Copper Ltd, to raise an estimated about Rs 4,500 crore (Rs 45 billion) for each -- the miner and the government.

"We are expected to send the proposal for Cabinet approval very soon," she said.

The Centre is likely to go ahead with divestment in 12-15 public sector units, including SAIL, Coal India, Hindustan Copper, SJVNL and EIL among others in the current fiscal to raise about Rs 40,000 crore (Rs 400 billion).

On the proposed Mines and Minerals Development and Regulations Act, the Secretary said, "The draft bill has gone to the ministry of law for vetting. It is in the final stages." The mines ministry is in the process of introducing a new legislation to govern the country's mining and quarrying sectors.