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Govt eyeing Rs50k cr disinvestment in PSUs by 2010-11

Govt eyeing Rs50k cr disinvestment in PSUs by 2010-11
PTI
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First Published: Fri, Mar 05 2010. 07 26 PM IST
Updated: Fri, Mar 05 2010. 07 26 PM IST
Bangalore: With Prime Minister Manmohan Singh giving the green signal for disinvestment in PSUs, the Union government is looking to double its disinvestment in PSUs to the tune of Rs50,000 crore by 2010-11, a top official said.
“With the impetus provided by Prime Minister we are eyeing an disinvestment to the tune of Rs50,000 crore in PSUs by 2010-11,” Satish Pradhan, joint secretary, department of disinvestment, told reporters on the sidelines of NMDC’s FPO announcement here on Friday.
He said the money collected through disinvestment would be recycled into social sector capital expenditure, “in projects like IITs, hospitals and village roads”.
“There is a misconception that this money will be used to meet the salary expenses of government babus, but it is not so”, Pradhan said.
The FPO by NMDC, he said is an opportunity for retail buyers to be part of the biggest producer of iron ore in the country, accounting for 11% of iron-ore production.
NMDC has the “best iron-ore deposits with a Fe (iron) content of 67% which is the highest in the world,” Pradhan said.
He said NMDC shares were currently traded at Rs425 and the price band for FPO would be slightly less than this.
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First Published: Fri, Mar 05 2010. 07 26 PM IST
More Topics: Disinvestment | PSU | Equity | NMDC | FPO |