Friday, September 30, 2022

‘In-principle’ nod to strategic disinvestment of 33 PSUs: Govt in RS

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New Delhi: The BJP government has given ‘in-principle’ approval for the strategic disinvestment of 33 PSUs, including subsidiaries, units and joint ventures, Minister of State Finance Anurag Singh Thakur told the Rajya Sabha on Tuesday. The government has planned sale of its majority stake and transfer of management control, Thakur said in a written response.

‘Profitability, loss not a criterion for strategic disinvestment of PSUs’

The list of PSUs shortlisted for strategic disinvestment includes profit-making, as well as loss-making CPSEs. “The government follows a policy of strategic disinvestment of CPSEs, which are not in ‘priority sectors.’ For this purpose, NITI Aayog has been mandated to identify such CPSEs based on the criteria of (i) National Security, (ii) Sovereign function at arm’s length, and (iii) Market Imperfections and Public Purpose. However, profitability/loss of the CPSEs is not among the relevant criteria,” Thakur told the Upper House of the Parliament.

‘Govt has no business to be in business’

“Strategic disinvestment of PSUs is being guided by the basic economic principle that the government should discontinue in sectors, where competitive markets have come of age and economic potential of such entities may be better discovered in the hands of a strategic investor due to various factors such as infusion of capital, technological upgradation and efficient management practices. The success of the transaction depends on the prevailing market conditions and the investors’ interest,” the House was told.

Here’s the list of PSUs, including subsidiaries, units and joint ventures for which the government has given ‘in-principle’ approval for strategic disinvestment:

Transactions Completed

  1. Hindustan Petroleum Corporation Ltd
  2. Rural Electrification Corporation Ltd
  3. Hospital Services Consultancy Ltd (HSCC)
  4. National Projects Construction Corporation (NPCC)
  5. Dredging Corporation of India

Transactions in process

  1. Project & Development India Ltd
  2. Hindustan Prefab Ltd. (HPL)
  3. Engineering Projects (India) Ltd
  4. Bridge & Roof Co. India Ltd
  5. Hindustan Newsprint Ltd (Subsidiary)
  6. Scooters India Ltd
  7. Bharat Pumps and Compressors Ltd
  8. Cement Corporation of India Ltd. D/o Heavy Industry
  9. Hindustan Fluorocarbon Ltd (Subsidiary)
  10. Central Electronics Ltd
  11. Bharat Earth Movers Ltd. (BEML)
  12. Ferro Scrap Nigam Ltd. (Subsidiary)
  13. Nagarnar Steel Plant of NMDC
  14. Alloy Steel Plant, Durgapur; Salem Steel Plant; Bhadrwati units of SAIL
  15. Pawan Hans Ltd
  16. Air India and its five subsidiaries and one JV
  17. HLL Lifecare
  18. Indian Medicines & Pharmaceutical Corporation Ltd (IMPCL)
  19. Kamarajar Port Limited
  20. Indian Tourism Development Corporation (ITDC)
  21. Karnataka Antibiotics and Pharmaceuticals Ltd
  22. Hindustan Antibiotics Ltd
  23. Bengal Chemicals and Pharmaceuticals Ltd. (BCPL)

Recent ‘in-principle’ approval for strategic disinvestment

  1. Bharat Petroleum Corporation Ltd (except Numaligarh Refinery Limited)
  2. BPCL stake in Numaligarh Refinery Limited to a CPSE strategic buyer
  3. Shipping Corporation of India Ltd. (SCI )
  4. Container Corporation of India Ltd. (CONCOR)
  5. THDC India Limited (THDCIL)
  6. North Eastern Electric Power Corp. Ltd. (NEEPCO)
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