Mumbai The government intends to start its 2012-13 divestment plan by offloading a further 10% stake in the state-owned iron ore producer, National Mineral Development Corporation (NMDC), through the offer for sale (OFS) mechanism for nearly R7,000 crore.

Even though the government had to defer its plans of diluting stake in other public sector entities, such as Steel Authority of India (SAIL) in 2011 and Rashtriya Ispat Nigam (RINL) in the recent past, due to valuation concerns, the NMDC follow-on public offer may not face such hurdles, say market experts.