The Centre is looking at divesting as much as 10 per cent stake in State-owned Housing and Urban Development Corporation (HUDCO).
“The resolution has been passed in the company’s general body meeting,” a source in the know of the development told BusinessLine.
“Union Minister of Housing and Urban Poverty Alleviation, M Venkaiah Naidu, is expected to sign the file in a day or two after which it will be sent for Cabinet approval,” the official added.
The move is in line with the government’s plans to encourage listing among public sector firms, apart from enhancing efficiency and corporate governance.Third attempt
This would be the government’s third attempt to sell its stake in HUDCO, which is wholly owned by the government and in administrative control of the Ministry of Housing and Urban Poverty Alleviation.
The UPA had proposed to disinvest 10 per cent stake in 2012. Before that it had attempted to sell 15 per cent stake in the housing finance company in 2006 which had not passed muster with the Left parties that supported the government at that time.
HUDCO was established in 1970 under the Companies Act with an equity of ₹2 crore. It undertakes housing and urban infrastructure development programmes in the country, provides long-term finance for construction of houses and also finances and undertakes setting up of new or satellite towns and industrial enterprises.
As on March 31, 2015, the company had total assets worth ₹33,113.37 crore and reported profit of ₹777.63 crore.