Nod for divestment in Coal India, Hindustan Copper

New Delhi, June 15 (IANS) The government Tuesday approved 10 percent divestment of its shares in Coal India and allowed another state-run firm Hindustan Copper to issue 10 percent equity to the public.

The decision was taken at a meeting of the Cabinet Committee on Economic Affairs that was presided over by Prime Minister Manmohan Singh.

Briefing reporters after the meeting, Home Minister P. Chidambaram said the money raised by Hindustan Copper would be used by it towards its capital expenses, while that from the sale of 10 percent equity in Coal India will accrue to the government.

The government currently holds 99.59 percent shares in Hindustan Copper, whose shares flared 11.89 percent on the Bombay Stock Exchange (BSE) Rs.526.50 after the sale of equity was approved by the government.

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