MMTC seeks 'Navratna' status in disinvestment

BANGALORE: Ahead of the proposed divestment of government equity in MMTC later this fiscal, the trading giant has sought coveted 'Navratna' status, which provides autonomy to a PSU board in terms of investment decisions.

"Disinvestment is during this fiscal year. We will move step by step. We have to appoint five independent directors. Once they are appointed, disinvestment process will start," MMTC Director (Marketing) Ved Prakash told reporters here.

The MMTC disinvestment is likely to be completed by October, he said.

The company, which achieved a turnover of Rs 68,687 crore, has also applied to the Department of Public Enterprises for Navratna status.

"We have already filed application with the Department of Public Enterprises. We are trying... but they (DPE) ask for documents and clarifications which takes time. We hope it should be done as soon as possible," he said.

The board of directors of 'Navratna' PSUs can take investment decision up to Rs 1,000 crore without approval from the government.

The government is likely to sell about 10 per cent of its stake in state-run trading giant MMTC, he said. Presently, the government holds a 99.33 per cent stake in the company.

As the government wants to raise Rs 40,000 crore from the disinvestment, MMTC is one of several bluechip PSUs on the sell-off radar in the current financial year. The others include SAIL, ONGC, RINL and NBCC.