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Govt may sell 8.9% stake in L&T to BHEL

The government may consider selling its 8.9% L&T stake it holds via Specified Undertaking of Unit Trust of India(SUUTI) to BHEL, reports CNBC-TV18 quoting Newswire18.
When contacted, BHEL’s Chairman this morning said that he is not aware of any such move. But sources indicated that this is part of a larger plan by the government to sell its key holdings in Axis Bank, L&T and ITC, which it holds via SUUTI in case money from auction of 3G spectrum does not come in this financial year.
The government is banking heavily on the 3G money. The budget had kept aside a target of Rs 35,000 crore from the 3G auction. In case that money does not come along, the government is preparing a fall back plan.
When sources in the finance ministry were contacted, they said that this is definitely an option that they are looking at but it is early to say if and when this will happen, because they are still hopeful of getting the money from the 3G auction. The date for the 3G auction has been set as January 14 by the DoT. There is some anxiety in North Block with regard to 3G auction, but they are still hopeful that the money will come though.

Source: Moneycontrol

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