India’s cabinet looks set to discuss the sell-off of 20 per cent of its stake in the Steel Authority of India (SAIL) in the next 10 days.
The proposal involves the government offloading a 10 per cent stake in the company and SAIL coming out with a public offer in the same proportion. The government at present holds a little over 85 per cent of SAIL. Other ministries in the government will get an opportunity to comment on the proposals before the cabinet meets.
SAIL’s expansion plans involve investment of over Rs 700 billion to raise hot metal capacity from 15 million tonnes to 23 million tonnes by 2013 and to 26 million tonnes by 2015. The company proposes to borrow Rs 60 billion this year to help fund this year’s Rs 100 billion capital expenditure programme.
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