Selloff likely in fertiliser PSUs

The finance ministry has proposed that 5-15 per cent of government equity in National Fertilisers Ltd and Rashtriya Chemicals & Fertilisers Ltd be sold.

The ministry of chemicals and fertilisers was yet to agree to the proposal, finance ministry officials said today. The government holds 97.64 per cent in National Fertilisers Ltd and 92.5 per cent in Rashtriya Chemicals & Fertilisers.

National Fertilisers reported a net profit of Rs 161 crore during 2004-05, while Rashtriya Chemicals posted a net profit of Rs 141 crore. The National Fertiliser scrip rose 4.1 per cent to Rs 46.90 on the Bombay Stock Exchange today.

The Rashtriya Chemicals & Fertiliser scrip went up 3.6 per cent to Rs 45.15.

"We are preparing a list of about a dozen profit-making PSUs where we intend to sell small stakes through public offers. We are talking to the administrative ministries and will finalise a list of six to eight companies shortly," a finance ministry official said.

These companies include Bharat Sanchar Nigam Ltd, Shipping Corporation of India, Concor, Indian Railways Finance Company, PowerGrid Corporation, Power Finance Corporation and Nalco.

Last week, the Cabinet cleared Power Finance Corporation's proposal for an initial public offer of 10 per cent of its paid-up capital along with disinvestment of 5 per cent government equity in the company.

The government hopes to raise Rs 4,000-5,000 crore from disinvestment this year. The proceeds will go to the national investment fund, to be used for meeting the government's social sector expenditure and revitalising weak PSUs.

The government has already invited bids for the sale of its 8 per cent stake in Maruti Udyog to state-owned banks and financial institutions. SBI Caps is has been given the task of setting a value for Balco.

The government intends to sell 44 per cent stake in Balco to Sterlite Industries, which holds the majority stake in the aluminum PSU.