Cabinet Clears Stake Sale in ONGC, Coal India, NHPC

The Cabinet today cleared stake sales in public sector companies ONGC, Coal India and NHPC, a move that could fetch the exchequer over Rs 40,000 crore, a government official told reporters.

The official did not give details.

The government has previously said it planned to sell a 10 per cent stake in state-run coal miner Coal India, a 5 per cent share in oil and gas explorer ONGC and 11.36 per cent of power producer NHPC in the current fiscal year ending March 2015.

The ONGC disinvestment is expected to fetch nearly Rs 18,000 crore for the government. The government currently holds a 68.94 per cent stake in the oil and gas major. The UPA government in 2012 had divested a 5 per cent stake in ONGC in 2012, which had added Rs 14,000 crore to the Centre's coffers.

The Finance Ministry has listed five merchant bankers - Citigroup, UBS Securities, ICICI Securities, Kotak Mahindra Capital and HSBC Securities - for managing the ONGC stake sale.

In the Budget, Finance Minister Arun Jaitley estimated to collect Rs 43,425 crore from selling stake in PSUs and another Rs. 15,000 crore from sale of residual stake in the erstwhile government companies.

The government's 10 per cent stake sale in Coal India could fetch about Rs 22,000 crore to the exchequer. The government owns 89.65 per cent of the world's largest coal producer. A planned stake sale in Coal India in the last financial year had to be deferred after stiff opposition from the trade unions.

Also, the 11.36 per cent stake sale in NHPC may mop up nearly Rs. 2,600 crore for the government. The government holds an 85.96 per cent stake in NHPC.

The government also plans to sell 5 per cent in SAIL and 10 per cent each in RINL and HAL in the current fiscal year.

(With inputs from Reuters)