Equity in NALCO, Neyveli to be disinvested

New Delhi, Jun 22: The government today decided to disinvest ten per cent of its equity each in non-Navratna Public sectors National Aluminium Company (NALCO) and Neyveli Lignite Corporation Ltd.

The decision, taken at the Cabinet Committee on Economic Affairs meeting, will reduced the government holding in Nalco to 77.15 per cent and in Neyveli Lignite to 83.56 per cent, Finance Minister P Chidambaram told reporters.

The disinvestment in the two companies will be done through the book building process at an appropriate time on the basis of the recommendations of the lead managers and the market prices prevailing then, Mr Chidambaram said. The money will go into the National Investment Fund of which 75 per cent will be for the social sector and 25 per cent for the revival of sick Public Sector Enterprises.

''NALCO will remain a strong PSU with overwhelming government stake of more than 76 per cent,'' he said.

On Mines Minister Sis Ram Ola's reported statement that the money earned through the disinvestment of NALCO should be ploughed back into the company, Mr Chidambaram said Mr Ola was present at the CCEA meeting when the decision was taken.

The Finance Minister said the disinvestment was a conscious decision arrived at through a consensus with the Left parties over a nine-month period. It was based on the commitment in the National Common Minimum Programme to divest a small portion of the government equity in non-Navratna PSUs that would go towards building the National Investment Fund.

UNI