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Seal on EIL selloff

New Delhi, Jan. 10: The government hopes to mop up around Rs 800 crore by selling a 10 per cent stake in consultancy major Engineering India Ltd (EIL).

“We expect to get around Rs 800 crore at current prices... The divestment will take place through a further public offering,” finance minister P. Chidambaram told reporters after a meeting of the Cabinet Committee on Economic Affairs (CCEA) today.

EIL provides design, engineering, project management and consultancy services to the hydrocarbon sector.

After the divestment, the government’s shareholding will come down to 70.40 per cent. In 2010, it had divested 10 per cent through a follow-on offer.

The EIL scrip closed at Rs 228.90 on the BSE, down 4.11 per cent from its previous close.

The government has proposed to raise Rs 30,000 crore from divestments in 2012-13 and so far it has been able to realise just over Rs 6,900 crore. While the NMDC issue had fetched Rs 6,000 crore, stake sale in Hindustan Copper yielded Rs 808 crore.

Nelp bids

The CCEA has rejected the bids of Ishar Gasoil Pvt Ltd for three oil and gas blocks under the ninth round of the new exploration licensing policy. While two blocks have been awarded to second-best bidders — a GAIL (India) consortium and a Deep Energy consortium — one block has not been awarded as there was no second bidder.

Chidambaram said the bids of Ishar Gasoil were rejected because of the company’s negative net worth.

 
 
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