Minority stakes in non-navratnas may be sold soon
Minority shareholding in profit-making non-navratna public sector enterprises such as Shipping Corporation of India, Engineers India, National Fertilisers, Rashtriya Chemicals and Fertiliser Corporation (RCF) and National Aluminium may soon be on ...
By TNN |
DELHI: Minority shareholding in profit-making non-navratna public sector enterprises such as Shipping Corporation of India, Engineers India, National Fertilisers, Rashtriya Chemicals and Fertiliser Corporation (RCF) and National Aluminium may soon be on the disinvestment block.
The government is drawing up a list of profitable PSUs where it has a large shareholding and could offload 5-10% holding to raise resources for social sector projects. As required by the National Common Minimum Programme (NCMP), the government will ensure that its holdings in the PSUs remain above 51% post divestment.
Finance minister P Chidambaram today told the Economic Editors��� Conference that the government had got clearance from the Left to explore disinvestment of minority holding in profitable non-navratna PSUs through the public offering route.
���We have identified profit making non-navratna companies for disinvestment of minority stakes. We will begin discussions (with the Left),��� he told the annual economic editors conference without giving names of the PSUs. Finance ministry sources told ET that the government is considering 12 PSUs, of which six will be shortlisted for disinvestment this fiscal.
In the first phase of disinvestment, the government is expected to offer shares of listed PSUs to the public and financial institutions. This is because the norms to be complied with for follow-on issues are quicker to complete than those for initial public offers. This would mean that companies such as SCI, EIL and RCF could make it to the divestment list this financial year.
In the subsequent phase, shares of unlisted but profitable PSUs would be divested. This would involve divestment of shares in companies such as Neyveli Lignite, National Hydro Power, Power Finance, Bharat Sanchar Nigam and Telecommunication Consultants of India.
Totally, there are 144 profit making public sector enterprises, of which 28 are listed.
The Cabinet Committee on Economic Affairs had also approved the listing of unlisted profitable public sector companies with a net worth of more than Rs 200 crore.
The government is drawing up a list of profitable PSUs where it has a large shareholding and could offload 5-10% holding to raise resources for social sector projects. As required by the National Common Minimum Programme (NCMP), the government will ensure that its holdings in the PSUs remain above 51% post divestment.
Finance minister P Chidambaram today told the Economic Editors��� Conference that the government had got clearance from the Left to explore disinvestment of minority holding in profitable non-navratna PSUs through the public offering route.
���We have identified profit making non-navratna companies for disinvestment of minority stakes. We will begin discussions (with the Left),��� he told the annual economic editors conference without giving names of the PSUs. Finance ministry sources told ET that the government is considering 12 PSUs, of which six will be shortlisted for disinvestment this fiscal.
In the first phase of disinvestment, the government is expected to offer shares of listed PSUs to the public and financial institutions. This is because the norms to be complied with for follow-on issues are quicker to complete than those for initial public offers. This would mean that companies such as SCI, EIL and RCF could make it to the divestment list this financial year.
In the subsequent phase, shares of unlisted but profitable PSUs would be divested. This would involve divestment of shares in companies such as Neyveli Lignite, National Hydro Power, Power Finance, Bharat Sanchar Nigam and Telecommunication Consultants of India.
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Totally, there are 144 profit making public sector enterprises, of which 28 are listed.
The Cabinet Committee on Economic Affairs had also approved the listing of unlisted profitable public sector companies with a net worth of more than Rs 200 crore.
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