EGoM to settle price band for Neyveli stake sale

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The Empowered Group of Ministers (EGoM) will decide the price band for the 3.56% stake sale in Neyveli Lignite Corporation (NLC). According to a Coal Ministry source, the meeting that will occur on Wednesday will focus on the company's decision over the price band for its disinvestment of NLC.

The government's panel of ministers headed by Minister P Chidambaram gave earlier clearance of the 3.56% disinvestment in NLC. This was done through an institutional placement program (IPP). The issue of the clearance is likely to set out in the first week of August. Last month, the Department of Disinvestment (DoD) approved the original plan of divesting 5% of its stake in mining company.

The department would now sell 3.56% of its shares after the approval of the IPP mode which was approved by EGoM. This totaled to selling over 5.58 million shares. The Indian government holds 93.56% stake in Neveli Lignite Corp (NLC).

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