Insta
DIPAM Sets The Stage For Strategic Disinvestment In BPCL and Other PSUs, Floats RFP Inviting Advisors For Sale Process
Swarajya Staff
Oct 14, 2019, 12:05 PM | Updated 12:05 PM IST
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The Department of Investment and Public Asset Management (Dipam) has floated Request For Proposal (RFP) inviting transactions, legal advisors, and asset valuers for divesting stakes in five public-sector undertakings (PSUs) — Bharat Petroleum Corporation (BPCL), Container Corporation of India (Concor), Shipping Corporation (SCI), and power companies THDC India and North Eastern Electric Power Corporation (NEEPCO).
DIPAM is mandated with the management of Central Government investments in equity including disinvestment of equity in Central Public Sector Undertakings. It also deals with all matters relating to sale of Central Government equity through offer for sale or private placement or any other mode in the erstwhile Central Public Sector Undertakings.
Earlier this month, the Cabinet empowered DIPAM to operate as the nodal department for strategic sale of PSU’s. This was seen as a move to expedite up the process and reducethe role played by the administrative ministries,under which the PSUs operate.
Based on the new process approved by the cabinet, DIPAM and the NITI Aayog will jointly identify PSUs for strategic disinvestment.
In the first lot of big-ticket disinvestment, the government is aiming to stake sales of PSUs, including BPCL, SCI and Concor, among others, which have recently been cleared by the Amit Shah-led panel, at the earliest and they could be placed for cabinet approval by November-end.
The disinvestment in these five PSUs will be critical to the government’s aim of achieving its its disinvestment target of Rs 1.05 trillion. and plans to rein in the fiscal deficit target at 3.3 per cent of GDP in 2019-20.
By selling 53.29 per cent in BPCL at the current valuation, the government is expected to mop up around Rs 56,400 crore.
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