MoD clears 10 pc disinvestment in HAL

In a development that will be watched keenly across the aviation and defence circles in the world, the Ministry of Defence has in-principle cleared 10 per cent disinvestment in the largest defence pubic sector undertaking (DPSU), the Hindustan Aeronautics Limited (HAL).
The MoD’s okay will now be vetted by the Ministry of Finance to arrive at the valuation of the company, its projected share price and also what kind of investment will be okayed — institutional or open to public. The public sector giant recorded sales of Rs 13,000 crore during the last fiscal. Sources in the MoD estimated that the valuation of the company, that owns vast tracts of lands in Bangalore and has plum joint-development deals in hand, would be in excess of Rs 65,000 crore.
The proposal will have to be cleared by the Cabinet Committee on Security (CCS) and also the Cabinet Committee of Economic Affairs (CCEA). The MoD proposes to disinvest 10 per cent across the next five years.
12/09/11 The Tribune

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Categories: Indian Aviation- In General Sep 2011