Govt may clear 10% Neyveli divestment

The disinvestment of 10% shares of Neyveli Lignite Corporation (NLC) is all set to be cleared at the next meeting of the Cabinet Committee of Economic Affairs (CCEA) with the Finance Minister moving a revised proposal for the sale of government equity in the company.

"The proposal to divest 10% stake in NLC first came up before the CCEA on January 30, but could not be cleared due to some differences among the ministries," sources said.

The matter was referred back to the department of disinvestment, which has moved a revised proposal after obtaining the approval of the Planning Commission and all the relevant departments and ministries.

The government proposes to sell 10% shares in the company through a book building process. The process of sale would start as soon as the CCEA nod is received, and the proceeds would go to the National Investment Fund.

The government holds 93.56% stake in the company, which is listed on the BSE and the NSE. Based on the current share price, the government is likely to raise around Rs 1,300 crore.