New Delhi: The government has begun the strategic disinvestment for the financial year 2019-20 and has decided to kickstart the process with five PSUs, several notifications posted on the Department of Investment and Public Asset Management (DIPAM) website on Friday showed. Although the notifications do not state the names of the PSUs explicitly, they mention two PSUs under the Ministry of Power, one PSU under the Ministry of Petroleum and Natural Gas, one Ministry of Shipping PSU and another from the Ministry of Railways.
DIPAM notification that hints at disinvestment
In a bunch of notifications released on Friday, the government said that it was looking to engage legal advisers/transaction advisers/asset valuers for the strategic disinvestment of its shareholding in a bunch of CPSEs. “Government of India is considering selection of transaction adviser/legal adviser/asset valuer separately for two strategic disinvestment of Government of India existing paid up equity shareholding in two CPSEs under the administrative control of Ministry of Power,” DIPAM said. Similar notices exist for three other PSUs from the other above-mentioned ministries.
Govt offering transfer of management control at 5 PSUs
The government is offering the transfer of management control at all the five PSUs under the above-mentioned ministries. The notifications show that the Centre is looking to offload 100 percent of its stake in the PSU under the aegis of the Petroleum Ministry and the Ministry of Power and partial stake in the PSU under the Ministry of Railways. The notifications make no mention of the quantum of stake sale in the PSU under the administrative control of the Ministry of Shipping. Proposals from interested entities have been invited by November 4 to assist the government in the process.
Earlier this month, a group of Secretaries approved the sale of the government’s entire stake in four public sector undertakings (PSUs) — BPCL (Petroleum Ministry), SCI (Ministry of Shipping), THDC and NEEPCO (Ministry of Power). Later, the Union Cabinet cleared a government proposal to sell 30 percent stake in CONCOR, which falls under the purview of the Ministry of Railways, and the sale of the Centre’s stake in THDC India and NEEPCO to NTPC. The strategic sale of these five PSUs is expected to fetch the government over Rs 66,000 crores. It has so far raised Rs 12,357.49 crores through disinvestment, according to data available on DIPAM website. The total target for the current financial year is Rs 1.05 lakh crores.
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