8 govt companies that will soon go on the block Finance Minister Arun Jaitley could target a record Rs 70,000 crore (Rs 700 billion) in proceeds from asset sales when he unveils his maiden budget on Thursday. Following are details of companies that could go on the block Steel Authority of India State shareholding: 80 per cent The government wants to sell 5 per cent of Steel Authority of India Ltd in the last week of July, people involved in the process said. Marketing roadshows for the deal, worth about $340 million at current prices, will begin soon after the presentation of the budget on July 10, the people said. Coal India State shareholding: 89.7 per cent Coal India Ltd is the worlds top producer yet its failure to meet output targets means that India is the third largest importer of coal. Before the election, sources close to Prime Minister Narendra Modis party had said he might restructure the business into smaller, regional units and open up the industry to foreign investors. Now, say official sources, the government is considering a direct sale of a 10 per cent stake that would be worth around $4 billion at current prices. Hindustan Zinc State shareholding: 29.6 per cent The government would like to sell its entire minority stake in Hindustan Zinc, a subsidiary of London-listed Vedanta Resources Plc, Indias largest mining and non-ferrous metals producer controlled by tycoon Anil Agarwal. The stake, now worth $3.6 billion, was slated for sale last year but the deal was derailed by industry opposition. Bharat Aluminium State shareholding: 49 per cent The government may also auction the 49 per cent it still owns in Bharat Aluminium Co. Ltd. It sold 51 percent a decade ago to Sterlite Industries, itself part of Agarwals Vedanta group. NHPC State shareholding: 86 per cent A 10 per cent stake in hydroelectric power producer NHPC is being considered for sale. Hindustan Aeronautics State shareholding: 100 per cent The government is also considering selling a 10 per cent stake in Hindustan Aeronautics Ltd, or HAL, in addition to raising the 26 per cent cap on foreign participation in joint ventures in the defence industry. Power Finance Corporation State shareholding: 72.8 per cent Power Finance Corporation, whose role is to finance power projects, was floated in 2007 and the government is considering selling a further 5 per cent stake. Rural Electrification Corporation State shareholding: 65.6 per cent Rural Electrification Corporation, floated in 2008, promotes and funds rural electricity projects. The government is considering a 5 per cent stake sale.
Posted on: Tue, 08 Jul 2014 12:45:56 +0000
Trending Topics
Recently Viewed Topics
© 2015