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With two successes on the disinvestment front under its belt, the Government may put Rashtriya Chemicals and Fertilisers (RCF) on the block next. If approved, this will be the 11th public sector undertaking approved for disinvestment.
“The Cabinet Committee on Economic Affairs (CCEA) is likely to consider offloading 12.5 per cent equity of the Government’s holdings. The CCEA meeting is scheduled on Saturday,” a highly placed Government source told Business Line .
At present, the Government holds 92.5 per cent in the company.
The Government has given approval for disinvestment in 10 PSUs, out of which one, Hindustan Aeronautical Ltd’s sell off is likely to take off next fiscal.
There is a possibility that disinvestment in RCF may also take place next year keeping in mind the various big companies lined up for sell off this year, the source added.
The news that RCF’s disinvestment may be considered on Saturday pumped up its shares. It gained over three per cent to close at Rs 57.05 after touching a high of Rs 57.60 on the BSE.
“The offloading of 12.5 per cent equity will help the company to meet the minimum public shareholding of 10 per cent, as prescribed by SEBI and needs to be completed by August 2013,” he explained.
The company was formed after the reorganisation of FCI into five companies. Till 1992, the company was a wholly-owned PSU.
During 1992 and 1993, 7.5 per cent of the equity had been disinvested to financial institutions, public etc. During the quarter ended September 30, the company’s turnover is Rs 1,688.57 crore and net profit Rs 82.88 crore.
Wheat MSP
The CCEA is also expected to reconsider a proposal to fix minimum support price (MSP) for wheat.
The committee in its meeting on November 1 discussed and finalised MSP for five rabi crops but asked for further consultation on MSP for wheat. This MSP will be applicable for 2012-13 rabi crops to be marketed in 2013-14.
Interestingly, the Commission for Agricultural Costs and Prices (CACP) recommended keeping MSP at the 2011-12 level of Rs 1,285/quintal. But now, it is believed that the thinking is to hike it by Rs 100.
However, this may not go down well with the Finance Ministry, which is working hard to cut the subsidy bill.
shishir.sinha@thehindu.co.in
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