Govt now looks at non-navratnas for divestment
The government is likely to turn its attention to the divestment of non-navratna public sector undertakings (PSUs), given the stalemate over diluting government stake in Bhel by 10%.
By Gunjan Pradhan Sinha, TNN |
NEW DELHI: The government is likely to turn its attention to the divestment of non-navratna public sector undertakings (PSUs), given the stalemate over diluting government stake in Bhel by 10%. The Left has also insisted that the government observe “the spirit” of the national common minimum programme (NCMP) and keep the navratnas out of the divestment exercise.
The government, therefore, feels it can proceed with the divestment of non-navratnas. Sometime ago, the cabinet had, in principle, approved a number of non-navratna PSUs for disinvestment this year. These include the Shipping Corporation of India (SCIL), National Mineral Development Corporation (NMDC), Dredging Corporation of India, Neyveli Lignite, Container Corporation of India and Kudremukh Iron Ore among others. The non-navratna PSUs which are about 14 in number are being considered by the Department of Disinvestment (DoD).
If the government brings down its stake to 75% in Neyveli Lignite it is likely to mop up about Rs 1,900 crore, according to the cabinet note. However, if the stake is diluted to 51%, the government could get more than Rs 4,400 crore from the PSU. The note also points out that Rs 1,200 crore can pour in from bringing down the state holding in National Aluminium Company (Nalco) to 75%.
The money raised from the sale of equity in these PSUs will go to the National Investment Fund constituted in January this year. Presently, the funds’ balance stands at zero as it came into existence post the NTPC divestment last year. The finance minister has already announced in the budget ’05-06 that Rs 5,000-7,000 crore will be raised through disinvestment this year.
According to official sources, DoD is using this cabinet approved list as the basis for taking up disinvestment of PSUs.
The government, therefore, feels it can proceed with the divestment of non-navratnas. Sometime ago, the cabinet had, in principle, approved a number of non-navratna PSUs for disinvestment this year. These include the Shipping Corporation of India (SCIL), National Mineral Development Corporation (NMDC), Dredging Corporation of India, Neyveli Lignite, Container Corporation of India and Kudremukh Iron Ore among others. The non-navratna PSUs which are about 14 in number are being considered by the Department of Disinvestment (DoD).
If the government brings down its stake to 75% in Neyveli Lignite it is likely to mop up about Rs 1,900 crore, according to the cabinet note. However, if the stake is diluted to 51%, the government could get more than Rs 4,400 crore from the PSU. The note also points out that Rs 1,200 crore can pour in from bringing down the state holding in National Aluminium Company (Nalco) to 75%.
The money raised from the sale of equity in these PSUs will go to the National Investment Fund constituted in January this year. Presently, the funds’ balance stands at zero as it came into existence post the NTPC divestment last year. The finance minister has already announced in the budget ’05-06 that Rs 5,000-7,000 crore will be raised through disinvestment this year.
According to official sources, DoD is using this cabinet approved list as the basis for taking up disinvestment of PSUs.
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