ET reported that Indian finance ministry has asked the steel ministry to give by November 5 its views on the proposed 15% disinvestment in mining PSU NMDC, which could fetch the government over INR 18,000 crore.

The report cited a senior steel ministry official as saying that “The department of disinvestment has recommended 15% disinvestment in NMDC and sought the steel ministry’s response on it by November 5. If the steel ministry does not respond by then, it will be construed that they approve of disinvestment department’s recommendation.”

He added that “At present, the steel ministry is studying the proposal sent by the disinvestment department and will forward its suggestions, if any, before the stipulated time.”

In August, the steel ministry had sent its proposal to sell 8.38% of government equity in the country’s largest iron ore miner, which has a market cap of about INR 118,000 crore. With the disinvestment department recommending 15% stake sale in NMDC, the government’s equity in the company is set to fall from 98.38% to 83.38%. Currently, institutional investors hold 1.62% stake in the firm.

(Sourced from ET)