The Hindu : National : Sale proceeds to be placed with National Investment Fund

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Friday, Jun 23, 2006

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National

Sale proceeds to be placed with National Investment Fund

Special Correspondent

New Delhi : The sale of 10 per cent equity stake in the National Aluminium Company Limited (NALCO) and the Neyveli Lignite Corporation (NLC) will raise Rs. 2,500 crore. It will be placed with the National Investment Fund to be used for social sector schemes and to revive ailing public sector units.

Union Finance Minister P. Chidambaram said as the share price of NALCO was ruling at around Rs 250, the Government had decided to split the shares to ensure greater participation of retail investors. The exact split ratio would be finalised by the Department of Disinvestment in consultation with the Ministry of Mines and the Department of Public Enterprises (DPE) . The Disinvestment Department had been authorised to decide on the issue of bonus shares in consultation with the Department of Expenditure, DPE and the Ministry of Mines.

The CCEA also approved a coalmine project of the Madhya Pradesh-based Northern Coalfields Limited (NCL) with a capital investment of Rs. 764.04 crore. It sanctioned the Block-B open cast project of the NCL for production of 3.5 million tonnes per year.

The NCL, a subsidiary of Coal India Limited, has been allowed to float tenders to outsource overburden removal and coal extraction for an initial three years under the emergency coal production plan for advancing the coal production schedule. Simultaneously, the tenders for overburden removal and coal extraction on long-term basis for 10 years would be issued.

The NCL would have the option of departmental implementation of both coal production and overburden removal.

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