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Cabinet clears share sales in ONGC, CIL, NHPC

The Cabinet cleared a 5 percent stake sale in ONGC, 10 percent in Coal India and 11.36 percent in NHPC. The divestment will be taken up through the offers-for-sale (OFS) route.

Reporter's Diary

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The Cabinet Committee of Economic Affairs has approved stake sales in state-run ONGC ,  Coal India and NHPC .

The share sales are part of the government’s divestment program outlined in the Union Budget through which it hopes to raise about Rs 56,000 crore in fiscal year 2014-15.

The Cabinet cleared a 5 percent stake sale in ONGC, 10 percent in Coal India and 11.36 percent in NHPC. The divestment will be taken up through the offers-for-sale (OFS) route.

At current market valuations, this would raise Rs 19,000 crore (ONGC), Rs 23,600 crore (Coal India) and Rs 2817 crore (NHPC), amounting to a total of about Rs 45,417 crore.

Sources told CNBC-TV18 that the government is likely to keep 20 percent quote for retail investors, carrying a 5 percent discount, in each of the share sales. Employees of the respective companies would have some share (0.25 percent for ONGC, 1 percent for Coal India and 0.56 percent for NHPC) of paid-up equity reserved for them.

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