Cabinet approves disinvestment in NBCC

Cabinet approves 15% disinvestment in NBCC

Question: Recently the Cabinet Committee on Economic Affairs has approved the disinvestment of what percent of paid up equity of National Buildings Construction Corporation Limited (NBCC) out of Government of India’s 90% shareholding?
(a) 10 Percent
(b) 15 Percent
(c) 7 Percent
(d) 5 Percent
Ans: (b)
Related facts:

  • On 13 July 2016 the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the disinvestment in National Buildings Construction Corporation Limited (NBCC).
  • Cabinet has allowed disinvestment of 15% paid up equity of National Buildings Construction Corporation Limited (NBCC) out of Government of India’s 90% shareholding.
  • It would result in estimated receipts of Rs.1,706 crore approximately to the Government.
  • NBCC was incorporated on 5th November, 1960 as a wholly owned Government of India enterprise under the administrative control of the Ministry of Urban Development.
  • The company was incorporated with the objective for becoming a leading company in the field of construction, engineering and project management consultancy services.

Reference:
http://pib.nic.in/newsite/PrintRelease.aspx?relid=147028
http://www.thehindubusinessline.com/markets/cabinet-approves-stake-sale-in-nbcc-india/article8844268.ece