DoD seeks Urban Dev Ministry's comments on NBCC divestment

NEW DELHI: Close on the heels of Disinvestment Commission recommending privatisation of National Buildings Construction Corporation, the Disinvestment Department has asked the Ministry of Urban Development for its comments on the matter.
The Disinvestment Department has sought comments of the Ministry of Urban Development on NBCC, after which it would be taken to the Core Group of Secretaries on Disinvestment (CGD), sources said.
The Disinvestment Department has asked the Ministry of Urban Development to give its views by January 31.
It may be recalled that the Disinvestment Commission had earlier this month suggested the sale of 74 per cent stake of the government’s 100 per cent shareholding in NBCC to a strategic partner while retaining 26 per cent for three years.
In its recent report, the commission had noted that there was no rationale for the government to continue in the company as there were no social benefits accruing from future association due to existence of employment opportunities.
NBCC has an equity base of Rs 120 crore and employs around 3,150 employees.