New Delhi, July 11 (IANS): The government will sell 5 percent stake in the state-run India Tourism Development Corporation (ITDC) that would fetch nearly Rs.24 crore to the exchequer.

The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Manmohan Singh Thursday approved the proposal.

The government currently controls 92.11 percent equity stake in the Bombay Stock Exchange (BSE) listed ITDC. The Stake sale will bring down the government's shareholding in the company to 87.11 percent.

According to the official statement released after the meeting, the government has decided to divest its 5 percent stake in ITDC in order to comply with the market regulator's norms.

As per the Securities and Exchange Board of India (SEBI) norms, the government's shareholding in the listed public sector undertakings must come below 90 percent by Aug 8, 2013.

ITDC runs hotels and restaurants and provides transport facilities at various places for tourists.