The Cabinet Committee on Economic Affairs (CCEA) is likely to approve tomorrow a proposal to disinvest 7.64 per cent of the Government stake in National Fertilisers Ltd (NFL), which is expected to fetch over Rs 175 crore to the exchequer.

“The CCEA meeting is scheduled for tomorrow. The issue related to disinvestment of 7.64 per cent paid-up equity of NFL out of Government’s shareholding is one among the eight proposals listed for discussion,” according to sources.

Last month, an Inter-Ministerial Group (IMG) had approved the stake sale by way of offer for sale. The Government aims to raise about Rs 175 crore from the proposed disinvestment.

Public shareholding norm

At present, the Government holds 97.64 per cent stake in state-run NFL. The stake sale in NFL is part of the Department of Disinvestment’s efforts to meet the minimum 10 per cent public shareholding norm as stipulated by market regulator SEBI for PSUs.

The Government proposes to raise Rs 40,000 crore by way of disinvestment in the current fiscal. It has already lined up a host of companies for stake sale.

NFL, a largest fertiliser PSU in the country, has an annual installed production capacity of 35.68 lakh tonnes of urea. Apart from urea, it is also engaged in the manufacturing and marketing of complex fertilisers and other agri products.

Shares of the company were trading down 2.55 per cent at Rs 34.45 on the BSE.

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