The government will sell its 10% stake in construction company National Building Construction Corporation (NBCC) this fiscal, through which it plans to raise up to Rs 250 crore.
The stake sale in NBCC is part of the government effort to raise Rs 40,000 crore from the sale of minority stake in profitable public sector units.
The government currently holds 100% stake in NBCC.
"The Cabinet Committee on Economic Affairs (CCEA) has cleared 10% stake sale proposal of NBCC," sources said, but did not comment on the exact time of sale.
The note for the CCEA was prepared by the Finance Ministry in consultation with the Urban Development Ministry.
NBCC, a unit under Ministry of Urban Development, had last month appointed two merchant bankers -- Enam Securities and IDBI Capital -- for managing the stake sale programme.
Through the initial public offer (IPO) the company is likely to float about 9 million shares in the market of face value of Rs 10 each.
The Cabinet has already given clearance for disinvestment of SAIL, ONGC and HCL.
So far, this fiscal Rs 1,162 crore has been raised by the government by divesting 5% stake in Power Finance Corporation in May.
The government aims to generate Rs 95,000 crore between 2011-12 and 2013-14 from selling its equities in state-run enterprises.
The Centre aims to earn Rs 40,000 crore from disinvestment this financial year. This is despite the government not being able to meet its target of Rs 40,000 crore in the last fiscal when total disinvestment proceeds stood at Rs 22,762.96 crore.
