Divestment not more than 10% in state firms

NEW DELHI: The UPA government will not divest more than 10% stake in the 50 public sector enterprises that are expected to be listed over the next five years. “There will be no policy change with regard to 10% limit,” finance minister Pranab Mukherjee told Rajya Sabha on Tuesday.

As per the current market conditions, this will help the government to mop up close to Rs 30,000 crores.
The finance minister added that disinvestment in NTPC, Rural Electrification Corporation and Satluj Jal Vidyut Nigam (SJVN) will be completed by March-end.

By offloading 5% stake each in NTPC and REC and a 10% stake in SJVN, the government can raise close to Rs 12,000 crore. The disinvestment of 8.83% stake in NMDC is expected to get Cabinet’s nod on this Thursday.
The Department of Disinvestment has already started dialogue with the administrative ministries and the central public sector undertakings (CPSUs) to assess their capital expenditure requirements to be met through issue of fresh equity.

The Cabinet had earlier decided that all profit-making listed CPSEs should have at least 10% public holding and all unlisted profitable CPSEs should get listed. The SEBI norms also require that all listed companies should have at least 10% equity with the public.