The Cabinet Committee on Economic Affairs has approved plans for 10.82 per cent disinvestment in Steel Authority of India (SAIL).

India’s union cabinet ministers considered the proposal for disinvestment and give an approval on Friday. The disinvestment will help 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 Cabinet Committee on Economic Affairs has approved the disinvestment of 10.82 per cent equity of SAIL out of Government of India shareholding of 85.82 per cent through an Offer of Sale of shares through stock exchanges,” an official release said on Friday.

The government still holds about 85.82% in SAIL, which is the largest producer of steel in the country. The approval has sent 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 central government has set a target to riase Rs 30,000 crore from disinvestment in public sector units in the current fiscal year.