BUSINESS

Cabinet nod for 15 % stake sale in NBCC

The Cabinet Committee on Economic Affairs approved the disinvestment of 15 per cent paid up equity of National Buildings Construction Corporation Limited (NBCC) out of its 90 per cent shareholding, Law and IT Minister Ravi Shankar Prasad said.

“It would result in estimated receipts of Rs.1,706 crore approximately to the government,” according to an official statement. “However, the actual realisation amount will depend upon the market conditions and the investor interest prevailing at the time of actual disinvestment.”

Discounted shares

“In order to inculcate a sense of belongingness amongst the employees of NBCC, it has also been decided to allot additional shares to the eligible and willing employees at a discount of 5 per cent to the issue/discovered (lowest cut off) price of the OFS (offer for sale).”

The government expects to earn Rs.56,000 crore through the sale of its stake in PSUs this financial year, with Rs 36,000 crore of this coming from minority stake sales and the remaining Rs.20,000 crore from strategic stake sales.

The Cabinet Committee on Economic Affairs also approved a proposal of the Department of Telecommunication regarding the transfer of shares by ITI Limited to the Special National Investment Fund (SNIF) to meet Securities and Exchange Board of India's minimum public shareholding requirement.

ITI Limited will be allowed to meet SEBI's requirement of minimum 25 per cent public shareholding by August 2017.

The Cabinet also approval the revised cost estimate (RCE) of Rs.7,290.62 crore for the ongoing 1,020 MW Punatsangchhu-II Hydroelectric Project (HEP) in Bhutan. The total cost escalation for the project, at this stage, is Rs.3512.82 crore, according to the government.



The Centre expects to earn Rs.56,000 crore through the sale of its stake in PSUs this year