The disinvestment department is expected to soon seek cabinet clearance for the strategic sale of National Aluminium Co Ltd (
) and Hindustan Copper Ltd (HCL), people familiar with the development told ET. Demand is likely to be keen given the rally in commodities and interest in metal producers.
“It is being worked out with the ministry of mines. We will soon finalise plans and approach the cabinet for the requisite clearances,” said an official aware of developments.
While the stake sales may take place next year, all clearances including cabinet approval will be completed within this fiscal year, he said. The Niti Aayog has recommended privatisation of the two along with other non-strategic public sector entities. The Centre may retain some stake in these firms, said the official cited above.
The government holds 66.14% of Hindustan Copper and 51.28% of National Aluminium.
Many Investors Keen on Hind Copper Stake
Nalco closed at Rs 90.45 on the NSE Monday for a market value of Rs 16,580 crore against a 52-week low of Rs 37.4 and a recent high of Rs 124.75. Hindustan Copper ended at Rs 114.15, a market value of Rs 11,050 crore, down from a peak of Rs 196.90 earlier this year but still up sharply from its 52-week low of Rs 42.25.
Multiple investors including Vedanta Group are said to be interested in picking up stakes in Hindustan Copper.
There has been some correction in global aluminium and copper prices but analysts expect them to go back up when recovery gathers pace.
Last week, the government had said that 17 strategic-sale transactions are in the process. These include Project & Development India Ltd, Engineering Project (India) Ltd, BEML Ltd, Bharat Petroleum Corporation Ltd (excluding Numaligarh Refinery Ltd), Container Corporation of India Ltd and Rashtriya Ispat Nigam Ltd.
The government has set a Rs 1.75-lakh crore disinvestment target for the current fiscal year.
In October, the Tata Group emerged as the successful bidder for Air India, marking the first privatisation of a public sector enterprise in 19 years. Last week, the government approved the strategic sale of Central Electronics Ltd (CEL) to Delhi-based Nandal Finance and Leasing Pvt Ltd for Rs 210 crore.Internet Explorer Channel Network