New Proposals For Disinvestment In PSU's

MINISTRY OF FINANCE

UNSTARRED

QUESTION NO . 1428

ANSWERED ON 23.11.2010

Will the Minister of FINANCE be pleased to state :-

(a) whether Government has any new proposal for more disinvestment of its holding in public sector companies;

(b) if so, the details thereof;

(c) the details of public sector companies likely to be disinvested and possible revenue likely to be generated through disinvestment process; and

(d) the details of public sector companies disinvested and revenue generated and invested during the last three years?

ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(S.S. PALANIMANICKAM)

(a) to (c) The following disinvestment proposals have been approved by Government and are under various stages of implementation :

(i) MOIL Limited: The Initial Public Offering by way of disinvestment of 10% by Government in conjunction with 5% each by Government of Maharashtra and Government of Madhya Pradesh is expected to open for public subscription on 26th November, 2010 as mentioned in the Red Herring Prospectus.

(ii) Shipping Corporation of India Limited: The follow-on public offering by way of disinvestment of 10% of paid-up equity capital of the Company in conjunction with issue of fresh equity of 10% by the Company is expected to open for public subscription on 30th November, 2010 as mentioned in the Red Herring Prospectus.

(iii) Hindustan Copper Limited: The follow-on public offering by way of disinvestment of 10% of paid-up equity capital of the Company in conjunction with issue of fresh equity of 10% by the Company. The Red Herring Prospectus is yet to be filed.

(iv) Steel Authority of India Limited: The follow-on public offering by way of disinvestment of 5% of paid-up equity capital of the Company in conjunction with issue of fresh equity of 5% by the Company. The Red Herring Prospectus is yet to be filed.
It is not feasible to estimate the realization, as the same would depend inter alia on factors such as the market conditions at the time of actual disinvestment, the investor feedback and the advice of the Book Running Lead Managers for the transaction.

(d) Government has disinvested its shareholding by way of public offerings in the domestic market during the last three years.

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