Government of India to divest stake in Hindustan Copper and Nalco
The Government of India (GoI) is hoping to divest its stakes in mining and metal companies Hindustan Copper Limited (HCL) and National Aluminum Company (Nalco).
The Ministry of Finance is looking to offload a 12.15% interest in Nalco and a 9.59% stake in Hindustan Copper to earn INR300bn ($5.4bn).
The transaction is expected to be completed in November 2012 as part of Gol's disinvestment plans for the current fiscal year, with other companies such as Oil India also on the selling block, reports the Business Standard.
The disinvestment is expected to take away the government's ownership of the two companies.
HCL is under the control of the Ministry of Mines, undertaking mining and copper production while Nalco's aluminium business encompasses bauxite mining, alumina refining, aluminium smelting and casting, power generation, rail and port operations.
Earlier this month, the government began its disinvestment process with the sale of a 10% stake in steel maker Rashtriya Ispat Nigam Limited (RINL) but had to defer bids.
Merchant bankers, UBS and Deutsche Bank bid to purchase the stake but failed to meet the government's revenue expectations.
Image: HCL, Nalco and Oil India will soon operate outside the control of the Indian Government. Photo: Hindustan Copper.