MTNL, IOC, ITDC, GAIL, VSNL, Hindustan Zinc, Madras Fertiliser and Hindustan Latex are among the the PSUs approved for divestment. The Government, however, deferred decision on ITI and put conditions for disinvestment of Central Electronics.

Briefing newsmen about the meeting, information and broadcasting minister Pramod Mahajan said that the committee has approved disinvestment of up to 19 million Government shares in MTNL through an institutional offering in GDR/domestic market with a common book building. This would reduce the Centre's holding from 56 per cent to 51 per cent. The MTNL disinvestment was expected to yield Rs 400 crore, he said.

With regard to VSNL, the Cabinet committee approved disinvestment of one million shares through a retail offering in the domestic market.

In case of IOC, it was decidedto complete the offering of 5 per cent of the total shares in the GDR/domestic markets during the current financial year. Mahajan said the committee also cleared sale of 180 million shares of GAIL in the GDR/domestic market during the current fiscal.

The Cabinet committee, he said, decided to bring down Government equity in Madras Fertiliser to 26 per cent from 32.74 per cent through strategic sale.

Mahajan said that in case of Hindustan Zinc, it was decided to disinvest 25 per cent of the Government equity in domestic market with preferential allotment to small investors and employees. The company has been permitted to to appoint advisor/merchant bankers to carry out the disinvestment process.

With regard to ITDC, the committee decided that the Government could disinvest up to 74 per cent. The panel also approved divestment up to 49 per cent in case of Hindustan Latex.

As far as ITI was concerned, Mahajan said that the decision was deferred. However, in respect of Central Electronics, the committeedecided that if the company's performance did not improve within a year, its research-oriented units would be merged with the other Government research and development units and the remaining part of the company be sold to an extent of 100 per cent.

The approvals, which were based on the recommendations of the Disinvestment Commission, would help the Government mop up Rs 10,000 crore as announced by finance minister Yashwant Sinha in his budget speech. Last year, Mahajan pointed out, the Government had managed to mop up Rs 6,190 crore through disinvestment against the target of Rs 5,000 crore.

The minister further said that exact modalities and the timing would be decided by the Government later in the light of the Cabinet approval.