The cabinet has also approved the proposal of disinvesting centre's equity in ICI India Ltd. The centre held 20 per cent of Indian Explosives Ltd shares, which was ultimately recognised as ICI. Its stake has eventually been reduced to 9.2 per cent.The ICI scrip was being quoted at Rs 171.90 a share on June 23 this year. Even a modest return at the rate of 10 per cent on this capitalised value would fetch the centre Rs 6.46 crore annually against the dividend receipt of Rs 1.50 crore.

It will, therefore, be profitable to disinvest its holding in ICI, the cabinet felt.

At the current price of Rs 171.90 per share, the government could fetch about Rs 64.64 crore for the 37.6 lakh shares of the company, an official spokesman said after the cabinet meeting.

The government had earlier held a 20 per cent stake in the equity of India Explosives, which was ultimately changed to ICI (India) and the government shareholding subsequently falling to 9.2 per cent.

Moreover, the basic purpose of bringing the manufacturers of industrial explosives to India having been satisfied and ICI having gone out of the fertiliser sector, there is hardly any justification for retaining the centre's stake in this company, the cabinet said.

CCEA also approved the power ministry's proposal for a Unified Load Dispatch and Communication Scheme for the eastern region at an estimated cost of Rs 290.01 crore at fourth quarter 1997 price level, including an IDC of Rs 63.05 crore, to be set up by the Powergrid Corporation of India Ltd.