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Cabinet postpones SAIL disinvestment proposal

13 Jul 2012 Evaluate

The Cabinet Committee on Economic Affairs (CCEA) has decided to postpone the proposal of disinvestment of Steel Authority of India (SAIL), as the Steel Minister, Beni Prasad Verma and his secretary are on an official tour. The proposal put across by the Department of Disinvestment suggested the selling of 10.82 percent shares of the company.

The government aims to raise Rs 30,000 crore this fiscal by selling stakes in 15 companies. The disinvestment of SAIL of about 10% stake is estimated to fetch about Rs 4,000 crore at current market price, while the total government share holding in the company is about 85.82 per cent.

Earlier in April 2010, the CCEA had approved 10 per cent disinvestment of government's share in SAIL along with issue of 10 per cent fresh equity by the company in two equal tranches. However, due to market volatility, the government deferred the offer.

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