The ICI scrip was being quoted at Rs 171.90 per share as on June 23 this year. At this price, the market value of shares held by the government would be about Rs 64,64 crore. Even a modest return at the rate of 10 per cent on this capitalised value would fetch the government Rs 6.46 crore annually against the dividend receipt of Rs 1.50 crore. It will, therefore, be profitable to disinvest the government holding in the ICI, the cabinet felt.

Moreover, the basic purpose of bringing the manufacturers of industrial explosives to India having been satisfied and ICI having gone out of the fertilizer sector, there is hardly any justification for retaining the government equity in this company,the cabinet said.

The Cabinet Committee on Economic Affairs (CCEA) also approved the proposal for implementing inter-regional HVDC transmission project between the eastern and northern regions by Powergrid Corporation of India Limited.

The estimated cost of the project at third quarter 1997 price level is Rs 671.56 crore.

The CCEA also approved the proposal of the Ministry of Power for the Unified Load Dispatch and Communication Scheme for the eastern region at an estimated cost of Rs 290.01 crore at fourth quarter 1997 price level, including an IDC of Rs 63.05 crore, to be set up by the Powergrid Corporation of India Limited.