Business
Govt Mulls Selling Minority Stakes In PSUs Under Railways, Mines And Fertilisers Ministries: Report
Indian Railways. (Wikimedia Commons).
The government is considering selling a minority stake in around five public sector undertakings (PSUs), which are reportedly part of the ministries for railways, mines and fertilisers, through offer-for-sale (OFS).
The Department of Investment and Public Asset Management (DIPAM), under the Union Finance Ministry, is planning to proceed with OFS in two railway PSUs, likely RITES and Rail Vikas Nigam Limited (RVNL). Additionally, an OFS in a mines ministry PSU is also being considered.
“Market conditions are good for OFS. The Department of Investment and Public Asset Management (DIPAM) is planning OFS in two railway PSUs, likely RITES and Rail Vikas Nigam Limited (RVNL). OFS in a mines ministry PSU is also in the plan,” a government official was quoted as saying by Moneycontrol.
The government has also identified two fertiliser PSUs for OFS this fiscal year, namely Rashtriya Chemicals & Fertilizers Limited (RCF) and National Fertilizers Limited (NFL). The official added that the offers will be spaced out properly.
The Union Budget for 2023-24 has set a disinvestment target of Rs 51,000 crore for PSUs. Due to the slower pace of strategic sales, the DIPAM has started exploring the idea of fresh offers for sale.
As part of this, the government recently sold a 3 percent stake in Coal India through OFS.
RITES, the export arm of the Indian Railways, has recently signed agreements with the National Railways of Zimbabwe. These agreements involve the supply of 3,000 HP diesel-electric locomotives and high-sided open wagons, with an estimated value of $81,175,500 or Rs 664 crore.
Further, RVNL, which serves as the construction arm of the Ministry of Railways and focuses on project implementation and transportation infrastructure development, has recently been awarded a contract worth Rs 808 crore from the National Highways Authority of India (NHAI). This contract involves the rehabilitation and upgrade of the Chandikhole-Paradip Section of NH-53 in Odisha, expanding it from four to eight lanes.
Under the Mines Ministry, major public sector undertakings (PSUs) include Nalco and Hindustan Copper.
The government is likely to conduct an offer for sale (OFS) for a 10 percent stake sale in RCF and 20 percent in NFL in the second quarter, Moneycontrol reported citing sources.
The government had previously identified eight fertilizer PSUs, including RCF and NFL, for strategic disinvestment in 2022, but the process has faced delays.
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