The government has approved the disinvestment of 10.82 per cent of its stake in Steel Authority of India (SAIL).

The Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Manmohan Singh, that met last evening, cleared the SAIL public offer. Our Correspondent reports, the share sale process, proposed to be conducted through auction route or offer for sale, is expected to fetch over 4,000 crore rupees to the government.

The government currently holds 85.82 per cent stake in SAIL. After the disinvestment, the government of India's shareholding in SAIL would come down to 75 per cent. The paid up equity capital of the company as on 31st March this year, stood at 4130.53 crore rupees.

The CCEA also approved a 17 per cent hike in Fair and Renumerative price (FRP) of sugarcane that mills pay to Sugarcane farmers to Rs 170 per quintal for 2012-13 season. The hike will ensure a guranteed price to cane farmers and will be uniformly applicable all over the country.

The FRP, the minimum price for sugarcane farmers for the ongoing marketing year stands at Rs 145 per quintal. India, the world's second largest sugar producer, is currently exporting Sugarcane on account of bumper production, which stood at 357.66 million tonnes in 2011-12.

The CCEA also approved the proposal of the Ministry of Consumer Affairs, Food and Public Distribution to defreeze the tariff value on imported RBD Palmolien from 484 US Dollars per tonne and align it with current international prices.