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Cabinet Approves Stake Sales In ITDC, STC

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The Cabinet Committee on Economic Affairs (CCEA) on Thursday, 11 July approved disinvestment of government stake in State Trading Corporation (STC) and ITDC, which would fetch around Rs 30 crore to the exchequer.

The cabinet also approved setting up of a new regulatory body for the aviation sector to replace the current regulator, information and broadcasting minister Manish Tewari told reporters.

The Disinvestment Department had sought Cabinet nod to offload 5 per cent stake in India Tourism Development Corporation (ITDC) and 1.02 per cent in STC through the Offer For Sale (OFS) route.

"STC, ITDC disinvestment has been approved," sources said after the meeting of the Cabinet Committee on Economic Affairs (CCEA).

The government expects the 5 per cent stake or 42.88 crore shares in ITDC to fetch Rs 23.58 crore.

Besides, it aims to garner about Rs 10 crore through disinvestment of 1.02 per cent, or 6.13 crore shares, in STC.

Government currently holds 92.11 per cent stake in ITDC and 91.02 per cent stake in STC.

The stake sale would help both the companies meet the minimum 10 per cent  public holding norm of market regulator Securities and Exchange Board of India (Sebi).

The government is required to bring down its stake in these two companies to 90 per cent by August 8.

Shares of STC were trading 5.75 per cent lower at Rs 99.20 on the BSE in afternoon trade.