NMDC disinvestment likely by mid-Dec

As of March 31, 2012, the paid up equity capital of NMDC stood at Rs 396.47 crore. After disinvestment through the OFS mode, the government holding in the entity will come down to 80 per cent.

NMDC has reported a nearly 15 per cent decline in its net profit at Rs 1,678.62 crore for the quarter ended September 30, 2012, largely due to lower production and fall in sales.

NMDC, under administrative control of Ministry of Steel, is primarily engaged in the business of iron ore mining.

But it has also been expanding its activities into production of steel and other value added products. It operates two mining complexes in Chhattisgarh and one in Karnataka. Although government had earlier proposed stake sale in NMDC, it postponed the decision due to poor market conditions.

The government plans to raise Rs 30,000 crore from disinvestment during the current fiscal. However, it has not been able to come out with any public issue during the first seven months of the fiscal.

Due to uncertain market conditions, the government in the last fiscal could raise only Rs 14,000 crore from disinvestment against the target of Rs 40,000 crore.