CCEA approves disinvestment of 15% in NBCC

The Cabinet Committee on Economic Affairs (CCEA) has approved the disinvestment of 15% paid up equity of National Buildings Construction Corporation Limited (NBCC).
Decision in this regard was taken by CCEA meeting chaired by Prime Minister Narendra Modi in New Delhi. The disinvestment of 15% will done out of Union Government’s 90% shareholding.
Key Facts

• The disinvestment would result in estimated receipts of approximately 1,706 crore rupees to the Government.
• However, the actual realization amount of receipts will depend upon the market conditions and the investor interest prevailing at the time of actual disinvestment.
• The disinvestment would further broadbase NBCC’s shareholding and enhance the disinvestment receipts for Government utilization as per Disinvestment Policy.

About National Buildings Construction Corporation Limited (NBCC)

• NBCC was incorporated in November 1960 as a wholly owned Union Government enterprise under the administrative control of the Union Ministry of Urban Development.
• It was incorporated with the objective of becoming a leading company in the field of engineering, construction, and project management consultancy services.
• Presently, Union Government holds 90% of the equity i.e. 54,00,00,000 shares and the balance 10% of the equity is held by the Public.
• The NBCC IPO was launched in March, 2012, when the Union Government had divested 10% paid up equity capital of NBCC out of its 100% shareholding.

Month: Current Affairs - July, 2016