Prime Minister Narendra Modi led union government is reportedly mulling another huge disinvestment of public sector undertakings including Bharat Petroleum, Shipping Corporation of India, THDC and NEEPCO. The government also wishes to reduce its holding in CONCOR from around 55% to 25%.
The union government will, however, have to get cabinet approval to start the disinvestment process, TOI reported quoting sources. The proposal has been approved at the administrative levels and could be put before the union cabinet in the coming two weeks.
The estimated market value that the government hopes to raise from the current scenario is around Rs 65, 000 crores IN BPCL, CONCOR and the Shipping Corporation.
The report further quoting a source said: “Whatever is the government holding in four PSUs will be put up for sale, while only 30% stake will be sold in container company CONCOR.”
NITI Aayog had recommended raising cash for meeting expenses and has invited a hit of Rs 1.45 lakh crore by deciding to lower corporate taxes. This year the government is hoping to raise Rs 1.05 lakh crore through disinvestment (rather terming it strategic sale).
The Modi government after aborting the plan to disinvest Air India in the first term the government has restarted the exercise to sell the national carrier.
The government is moved to selling its stake in PSUs such as HPCL to ONGC and REC to Power Finance Corporation, the market experts wary of the Centre’s intent to actually “privatise” companies.