New Delhi Taking the first step towards raising R30,000 crore from disinvestment during the current financial year, the Cabinet Committee on Economic Affairs (CCEA) on Thursday approved the disinvestment of 10% paid-up equity capital of National Mineral Development Corporation (NMDC). The government currently holds 90% stake in the mineral exploration company, and post the share sale, the stake will come down to 80%. The divestment will happen through the offer for the sale of shares through Stock Exchange (OFS) method and is expected to fetch fetch the government over R7,000 crore. As per the CCEA approval, an empowered group of ministers (EGoM) will be authorised to take a call on the floor price, the number of tranches, the basis of allotment and the number of shares to be allotted in each of the tranches. “The EGOM may also accept or cancel the offer, if there is not enough demand at or above the floor price; in case of over-subscription in one or more tranches, the EGoM will decide whether the over-subscribed amount is to be retained, subject to the overall disinvestment of 10%," an official statement said. NMDC is a listed Navratna central public service enterprise under the administrative control of the steel ministry. So far, the government has not been able to come out with any public issue in the current fiscal. Due to the uncertain market conditions, the government, in the last fiscal, raised only R14,000 crore from disinvestment against a target of R40,000 crore. The paid-up equity capital of NMDC stood at R396.47 crore as of March 31, 2012. “The CCEA also approved the authorisation in favour of EGoM to change the method of disinvestment from the OFS method, if the same is required subsequently due to market conditions or due to change in Sebi rules and regulations, etc,” said the statement. The EGoM will also take a call on the method and procedure of allotment of shares to the employees in consultations with merchant bankers/advisors to the issue. In March 2010, the government had offloaded its 8.38% holding of the then 98.38% stake in the company through a follow-on public offer (FPO). NMDC is primarily engaged in the business of iron-ore mining with an annual capacity of 30 million tonne. But NMDC is also expanding its activities towards production of steel and other value-added products. It is India's largest producer of iron ore, operating two mining complexes in Chhattisgarh and one in Karnataka. Some of the other Cabinet decisions include: Approval of National Policy on Electronics 2012: The policy is expected to create an indigenous manufacturing eco-system for electronics in the country. It will foster the manufacturing of indigenously designed and manufactured chips, creating a more cyber secure ecosystem in the country. It will enable India to tap the great economic potential that this knowledge sector offers. The increased development and manufacturing in the sector will lead to greater economic growth through more manufacturing and consequently greater employment in the sector. The policy envisages that a turnover of $400 billion will create 2 million jobs. Backward Regions Grant Fund (BRGF) — State Component: A special plan for Bihar in 2012-13 with an allocation of R1,500 crore, based on the enhanced level of cost of R9,985.54 crore of all existing projects, revised cost of existing projects and the cost of new projects, if any, that may be approved by the empowered committee. Special Plan for the Kalahandi-Bolangir-Koraput (KBK) districts of Orissa in 2012-13 with an allocation of R250 crore Special package for implementing drought mitigation strategies in Bundelkhand region of UP and MP in 2012-13 with an additional Central assistance of R1,400 crore.