The government today set in motion the process for strategic sale, American Depository Receipt (ADR) issue and domestic float in the profit-making National Aluminium Company Ltd and cleared a proposal for privatisation of Manganese Ore India Ltd (MOIL).
A meeting of the Cabinet Committee on Disinvestment (CCD), chaired by Prime Minister Atal Bihari Vajpayee, decided that work on the entire three-phase disvestment in Nalco, involving shedding of 59.15 per cent equity, should be taken up simultaneously.
The three phases involve an ADR issue of 20 per cent, domestic issue of 10 per cent and offloading 29.15 per cent equity along with management control in favour of a strategic partner.
Briefing reporters after the meeting, disinvestment minister Arun Shourie said experience showed that ADR issue would take 5-6 months, while it would take nearly nine months to locate a strategic partner. CCD was of the opinion that the government would get the best price for its shares if it started work on all the three stages.
The coal and mines ministry, the administrative ministry for Nalco, had raised certain objections on the timing of the three-phase divestment saying the government might not get the right price for its equity without separating domestic and ADR issues.
Shourie said though different opinions were expressed, the decision was unanimous.
The coal and mines ministry had suggested a staggered disinvestment with the strategic sale only after domestic and ADR issues.
Meanwhile, Nalco has begun work to shift to US GAAP (generally accepted accounting principles) ahead of its ADR issue and the disinvestment ministry would soon appoint domestic and international legal consultants and an international accountant.
