CCEA to access possibility of 10% divestment in SAIL
The Cabinet Committee on Economic Affairs (CCEA) of the government of India will look into the possibility of divesting 10 per cent Steel Authority of India (SAIL) today.
India's union cabinet ministers are expected to consider a proposal to sell a 10.82% stake in Steel Authority of India (SAIL) in order to raise money to fund the government's social sector schemes. The proposed sale of stake might allow the government tor raise as much as Rs 4,000 crore at current market prices.
The government still holds about 85.82% in SAIL, which is the largest producer of steel in the country. If the cabinet clears the proposed sale, it will send a positive signal to the market that the government is back on reforms and will also raise the much needed resources for the government to fund its social schemes.
The weak market conditions might force the CCEa to delay the sale of stake for some time. Several public issues have been postponed due to the market conditions in which investors are afraid to invest in government held firms.
The central government has set a target to riase Rs 30,000 crore from disinvestment in public sector units in the current fiscal year.