June 8, 2012
India plans to dispose stakes in state-owned fertiliser firms
A disinvestment target of INR300 billion (US$5.4 billion) for the fiscal year 2012-13 has been set up by the Indian government and plans to divest its stakes in state-owned fertiliser firms National Fertilisers Ltd (NFL) and Rashtriya Chemicals and Fertilisers Ltd (RCF).
"The Department of Disinvestment has proposed to dilute 10% stake in NFL and another 10-20% in RCF," a senior official in the fertiliser ministry told PTI.
The official further said that the proposal to sell stake in NFL was made by the Department of Disinvestment and the fertiliser ministry and the proposal to sell stake in of RCF was made by the Department of Disinvestment. These proposals are currently being considered by the finance ministry, fertiliser ministry and other related ministries, he said.
Currently, the government holds 92.5% in RCF and 97.64% stake in NFL.
In the previous fiscal year (2011-12) due to volatile stock market conditions the government managed to raise only INR140 billion (US$2.5 billion) against the target of INR400 billion (US$7.2 billion).
This year, the disinvestment in PSUs is expected to begin in June with the initial public offering of state-owned steel maker Rashtriya Ispat Nigam Ltd (RINL), through which the government plans to raise INR25 billion (US$449 million) by selling 10% stake in the RINL.