Cabinet postpones disinvestment of Neyveli

New Delhi, June 2 (UNI) The Cabinet today postponed disinvestment of the Neyveli Lignite Corporation(NLC) as some more information was required on the matter, Information and Broadcasting Minister Priya Ranjan Dasmunsi said here today.

"The decision to divest government's stake in Neyveli was postponed. Some more information relating to the divestment is required", Mr Dasmunsi told newspersons here, while briefing on the Cabinet meeting.

According to informed source the proposal relates to disinvestment of 10 per cent shares in NLC with the Finance Ministery moving a revised version for the sale of government equity in the company.

The proposal to divest 10 per cent stake in NLC first came up before the CCEA on January 30, but it could not be cleared due to differences among the Ministries concerned.

The matter was again referred back to the Department of Disinvestment, which moved a revised proposal after obtaining the approval of the Planning Commission and all the relevant Departments and Ministries.

The government has plans to sell 10 per cent of the shares in the company through a book building process.

The process of sale will start as soon as the CCEA nod is received and the proceeds will go to the National Investment Fund (NIF).

The government holds 93.56 per cent stake in the company, which is listed on the Bombay Stock Exchange and the National Stock Exchange.

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