EIL stake sale on Cabinet agenda

Last Updated: Mon, Jan 07, 2013 19:41 hrs

The Cabinet is likely to discuss a proposal this week to sell a 10 per cent stake in Engineers India Ltd (EIL), which may help the government raise Rs 645 crore for its dwindling coffers. The meeting may also discuss a proposal to increase the financial assistance for building homes under Indira Awas Yojana from Rs 45,000 to Rs 84,000.

The proposal for divestment of 10 per cent in EIL is likely to be discussed in the Cabinet Committee on Economic Affairs (CCEA), while the one on Indira Awas Yojana may be taken up by the full Cabinet meeting , both scheduled for this week, people aware of the development said.

In the July-September quarter of the current financial year, EIL reported a net profit of Rs 161 crore, an increase of 10 per cent over the corresponding period in 2011-12.

The government currently holds an 80.4 per cent stake in EIL. In 2010, it had divested a 10 per cent stake through a follow-on public offe.

So far this financial year, the government has been able to realise just over Rs 6,900 crore through stake sale in public sector undertakings, against an yearly target of Rs 30,000 crore. Stake sales of Oil India Ltd and NTPC Ltd are lined up for January and February.

Meanwhile, officials in the know said the proposal to increase the financial assistance under Indira Awas Yojana had been mooted by the department of rural development as the current assistance of Rs 45,000 given to below poverty line (BPL) families was low, given the rise in construction cost. For hilly and remote areas, the current assistance is Rs 48,500.

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