Disinvestment: Cabinet nod for IOC (10%), NTPC (5%) stake sale [ Current Affairs ]
The Cabinet Committee on Economic Affairs (CCEA) gave its approval for 10 per cent stake in blue-chip Indian Oil Corporation (IOC) and 5 per cent in power producer NTPC (National Thermal Power Corporation Limited) to mop up about Rs 13,600 crore in this fiscal’s first disinvestment approval.
- These two Maharatna companies will raise 41000 crore rupees through disinvestment in CPSUs for the current financial year 2015-16.
- At present, Union Government holds 74.96 percent stake in NTPC and 68.57 percent stake in IOC but after the sale, the Government will be left with a 58.57 percent stake in Indian Oil and 69.96 percent in NTPC.
- The government is looking at selling stake in Indian’s largest fuel retailer IOC for the second time in 13 months. Decision in this regard was taken by Union Cabinet Meeting chaired by Prime Minister Narendra Modi in New Delhi.
- Disinvestment in both Maharatna companies will be executed through the Offer for Sale (OFS) route and stock exchanges.
- Those bidding for up to 2 lakh of retail investors will be required to deposit the full amount at the time of the bid, while high net-worth and institutional investors need not do so.
- Published on: May 18, 2015