The Hindu Business Line : CCEA defers decision on NLC disinvestment

THE Cabinet Committee on Economic Affairs (CCEA) is understood to have deferred a decision on a proposal to divest 10 per cent stake in mini-navratna Neyveli Lignite Corporation (NLC).

The Government holding in NLC as on December 31 last year stood at 93.56 per cent. The paid-up capital of the company as on this date stood at Rs 1,678 crore.

Informed sources said the NLC proposal came up for discussion at the CCEA meeting on Thursday.

The Coal Ministry had supported the proposal to offload a 10 per cent holding of the Government through the book-building route.

The Finance Minister, Mr P. Chidambaram, who briefed the media on CCEA decisions, however left newspersons on tenterhooks as regards the decisions on disinvestment. Asked if any proposals on disinvestments wereconsidered, Mr Chidambaram replied that the "usual practice that we are following is that whatever decisions are taken are conveyed to the Ministries concerned. These are price-sensitive. They are not announced. They will be processed in the normal course."

As regards other decisions of the CCEA, the Finance Minister said the Cabinet Committee had given its approval for establishment of a Central institute of horticulture at Medziphema Campus, Nagaland, at a total cost of Rs 20 crore.

Rajmahal opencast project: The CCEA has given its approval for outsourcing Over Burden removal and coal extraction option for existing 10.5 million tonne per year (MTPY) as well as 6.5 MTPY incremental capacity totalling 17 million tonne per year for Rajmahal expansion Opencast Project of Eastern Coalfields Ltd with an investment of Rs 50.08 crore.

Kottayam-Erumeli rail-line: The Finance Minister said the CCEA had given its nod for the Railways to drop a proposal for a new line between Kottayam and Erumeli.

"In response to the suggestion of the State Government and the public in that area, the CCEA has given approval to the Ministry of Railways dropping the proposal for a new line between Kottayam and Erumeli. This project is now given up on the recommendation of the State Government of Kerala," Mr Chidambaram said.

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