 "Govt defers SUUTI closure, sets up stake sale in private firms")
New Delhi: The government today decided not to wind up Specified Undertaking of UTI (SUUTI) for the time being, paving way for sale of its holdings in three private firms – ITC, L&T and Axis Bank.
“The proposal of the finance ministry (with regard to SUUTI) has been approved,” Information and Broadcasting Minister Manish Tewari told reporters after a meeting of the Union cabinet.
SUUTI holds 11.54 percent stake in ITC, 23.58 percent in Axis Bank and 8.27 percent in Larsen & Toubro which are valued around Rs 40,000 crore.
The cabinet had in March 2012 cleared the proposal to wind up SUUTI and create a National Asset Management Company (NAMC). The NAMC was in turn to take loan from banks leveraging its assets to buy government stakes in public sector companies.
The government has budgeted Rs 14,000 crore by way of residual stake sale in companies in which it does not hold a majority stake.
With the government deciding not to winding up of SUUTI, it would be able to offload its holdings in these companies separately on the basis of suitable market valuation.
PTI
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