The News “Govt to divest 15% stake in MMTC; to fetch about Rs 800 crore” has come in at a time when the SEBI instructions on Public-Sector-Unit(P.S.U) share holdings is about to take effect. SEBI has ruled that at least 25% of the stakes in the P.S.U should be made public. As of now, the government-share is 89.93%.
By disinvesting 15% of its stake, the government hopes to earn 800-Core rupees to its exchequer within the current-financial-year. This will also help the government in moving towards its disinvestment target of 41,000-Cores, which has been fixed for the current fiscal-year.
In the year 2013, the government had sold 9.33%-stakes. It yielded around 570-crores to the government exchequer. There have been around 12 P.S.Us which have been listed by the government for disinvestment purposes. It is seen as reducing the burden on the government’s exchequer, as well as increase the participation of public in the affairs of P.S.U.
- Metals-&-Minerals trading-Corporation(MMTC) is the largest Indian foreign-trading company. It has been functional for the past 50 years. It has many ventures, including dealing with Ferrous & Non-Ferrous-metals.
- Its operational areas cover the complete globe.
- It is the second largest Foreign-Exchange earner for India, after Petroleum-Refining-companies.