0
0
Government has given ‘in-principle’ approval for strategic disinvestment of 33 CPSEs
By PIB Delhi
The Government has given ‘in-principle’ approval for strategic disinvestment of 33 Central Public Sector Enterprises (CPSEs) including subsidiaries, Units and Joint Ventures with sale of majority stake of Government of India and transfer of management control. The list of 33 CPSEs are at Annexure. This was stated by Shri Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs, in a written reply to a question in Rajya Sabha today.
These include profit making as well as loss making CPSEs. 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.
The details of disinvestment targets set by the Ministry of Finance and achieved results each year over the last five years are as follows:
(in Rs. Crore)
Year Budget Estimate Revised Estimate Actual Realisation 2014-15 43,425 26,353 24,349 2015-16 69,500 25,313 23,997 2016-17 56,500 40,500 46,247 2017-18 72,500 1,00,000 1,00,057 2018-19 80,000 80,000 84,972
Strategic disinvestment of CPSEs is being guided by the basic economic principle that 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 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.
ANNEXURE
List of CPSEs, including Subsidiaries, Units & Joint Ventures for which Government has given ‘in-principle’ approval for strategic disinvestment.
a) Transactions Completed
Serial No. Name of CPSE Administrative Ministry 1 Hindustan Petroleum Corporation Ltd. M/o Petroleum and Natural Gas 2 Rural Electrification Corporation Ltd. M/o Power 3 Hospital Services Consultancy Ltd. (HSCC) M/o Health and Family Welfare 4 National Projects Construction Corporation (NPCC) M/o Water Resources 5 Dredging Corporation of India M/o Shipping
b) Transactions in process
Serial No. Name of CPSE Administrative Ministry 1 Project & Development India Ltd. D/o Fertilizers 2 Hindustan Prefab Ltd. (HPL) M/o Housing and Urban Affairs 3 Engineering Projects (India) Ltd. D/o Heavy Industry 4 Bridge & Roof Co. India Ltd. D/o Heavy Industry 5 Hindustan Newsprint Ltd. (Subsidiary) D/o Heavy Industry 6 Scooters India Ltd. D/o Heavy Industry 7 Bharat Pumps and Compressors Ltd. D/o Heavy Industry 8 Cement Corporation of India Ltd. D/o Heavy Industry 9 Hindustan Fluorocarbon Ltd. (Subsidiary) D/o Chemicals & Petrochemicals 10 Central Electronics Ltd. D/o Scientific and Industrial Research 11 Bharat Earth Movers Ltd. (BEML) D/o Defence Production 12 Ferro Scrap Nigam Ltd. (Subsidiary) M/o Steel 13 Nagarnar Steel Plant of NMDC M/o Steel 14 Alloy Steel Plant, Durgapur; Salem Steel Plant; Bhadrwati units of SAIL M/o Steel 15 Pawan Hans Ltd. M/o Civil Aviation 16 Air India and its five subsidiaries and one JV M/o Civil Aviation 17 HLL Lifecare M/o Health 18 Indian Medicines & Pharmaceutical Corporation Ltd. (IMPCL) M/o Ayush 19 Kamarajar Port Limited M/o Shipping 20 Indian Tourism Development Corporation (ITDC) M/o Tourism 21 Karnataka Antibiotics and Pharmaceuticals Ltd. D/o Pharmaceuticals 22 Hindustan Antibiotics Ltd. D/o Pharmaceuticals 23 Bengal Chemicals and Pharmaceuticals Ltd. (BCPL) D/o Pharmaceuticals
c) Recent ‘in-principle’ approval for strategic disinvestment
Serial No. Name of CPSE Administrative Ministry 1 (a) Bharat Petroleum Corporation Ltd(except Numaligarh Refinery Limited)(b) BPCL stake in Numaligarh Refinery Limited to a CPSE strategic buyer M/o Petroleum and Natural Gas 2 Shipping Corporation of India Ltd. (SCI ) M/o Shipping 3 Container Corporation of India Ltd. (CONCOR) M/o Railways 4 THDC India Limited (THDCIL) M/o Power 5 North Eastern Electric Power Corp. Ltd. (NEEPCO) M/o Power
