The proposal to divest government’s stake in SAIL and NMDC is final and would be sent to the Union cabinet next month for approval, Union Steel minister Vir Bhadra Singh said on Saturday.

“The disinvestment proposal for SAIL and NMDC has been finalised and will be put before the union cabinet in December for approval,” Mr. Singh told reporters on the sidelines of Metals Minerals Manufacturing Expo here today.

The Steel ministry has approved the disinvestment proposal, which has also received in—principle approval of the disinvestment department of the finance ministry.

Asked whether disinvestment in the two Navaratna PSUs would take place in the current financial year, Mr. Singh said, “We will try to do something this fiscal.”

The minister said the follow—on public offer (FPO) in SAIL would be a combination of 10 per cent dilution of the government’s equity and 10 per cent issue of additional shares.

On steel production in the country, Mr. Singh said this year total production of steel would be 60 million tonnes and the production target for 2011—12 would be 124 million tonnes.

The steel minister said that during April to October period this year, steel production in the country had increased by 4 to 5 per cent, while demand increased by 4 to 9 per cent depending on product category.

Referring to capacity expansion, he said brownfield expansion was on schedule although there was some delay in greenfield expansion due to problem of land and linkage of mine.

Steel Secretary Atul Chaturvedi said the process of making the Orissa Mineral Development Corporation a subsidiary of the Rastriya Ispat Nigam Ltd was likely to be completed in two months time.

At present, the proposal was with the Company Law Board, he said.

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