India plans $880 million of share sales in March

MUMBAI Thu Feb 21, 2013 8:36pm IST

Labourers work inside a steel factory on the outskirts of Agartala, Tripura, November 6, 2009. REUTERS/Jayanta Dey/Files

Labourers work inside a steel factory on the outskirts of Agartala, Tripura, November 6, 2009.

Credit: Reuters/Jayanta Dey/Files

Stocks

   

MUMBAI (Reuters) - India plans to raise about $880 million next month cutting its stakes in two state companies, sources with direct knowledge of the matter said, a move that will help the government tackle the budget deficit.

Asset sales are a key part of the government's plan to cut the deficit to 5.3 percent of gross domestic product for the fiscal year to end-March, from 5.8 percent in 2011/12, to avoid a credit downgrade.

The government was expected to sell a 10.82 percent stake in steelmaker Steel Authority of India Ltd (SAIL.NS) via a share auction in the third week of March, three sources with direct knowledge told Reuters on Thursday.

The SAIL stake is worth about $620 million at current prices and its sale would leave the government with a 75 percent stake.

The government also plans to sell a 12.15 percent stake worth about $260 million in National Aluminium Co Ltd (Nalco) (NALU.NS) early next month, two other sources said.

All the sources declined to be named because they are not authorised to speak to the media before a public announcement.

Neither Nalco nor SAIL was available to comment.

(Reporting by Sumeet Chatterjee; Editing by Dan Lalor)

FILED UNDER:

Fast-tracking Projects

REUTERS SHOWCASE

Oil Prices

Oil Prices

Oil resumes slide after brief rebound on short-covering.  Full Article 

Space Programme

Space Programme

ISRO tests its heaviest space launch vehicle, eyes global market   Full Article 

Coal India Strike

Coal India Strike

Coal India workers threaten five-day strike, stokes output worries  Full Article 

Gold Discount

Gold Discount

Dealers offer gold discount for first time in five months  Full Article 

Lakhvi Granted Bail

Lakhvi Granted Bail

Pakistan court bails man accused of masterminding Mumbai attack  Full Article 

GST Bill

GST Bill

Cabinet clears bill for nationwide goods and services tax.  Full Article 

Aviation Sector

Aviation Sector

Breakingviews: SpiceJet rescue is no fix for India aviation woes.  Full Article 

Global Economy

Global Economy

Fed confident on U.S. growth, opens door wider to rate hike.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage