The Narendra Modi government is pressing ahead with the strategic disinvestment of 23 Public Sector Undertakings (PSUs), IANS reported.
The Union government given in-principle approval for strategic disinvestments in 23 PSUs including subsidiaries, units and joint ventures through majority stake sale of the government holding and transfer of the management control.
The Union government is hoping to mobilise Rs 1.05 lakh crore from disinvestment in the current financial year, an increase of 31 per cent over the last year's target.
Among the units that have been identified for strategic disinvestment include Air India and its five subsidiaries, Project & Development India, Hindustan Prefab (HPL), Engineering Project (India), Bridge and Roof Co. India, Pawan Hans, Hindustan Newsprint Ltd, Scooters India Limited, Bharat Pumps & Compressors, Hindustan Fluorocarbon (HFL), Central Electronics, Bharat Earth Movers (BEML),Ferro Scrap Nigam, Cement Corporation of India (CCI), Nagamar Steel Plant of NMDC, and SAIL's Alloy Steel Plant in Durgapur.
"Strategic disinvestment has been guided by the basic economic principle that the government should not be in the business to engage itself in manufacturing/producing goods and services in sectors where competitive markets have come of age, and economic potential of such entities may be better discovered in the hands of the strategic investors due to various factors, e.g. infusion of capital, technology up-gradation and efficient management practices," Finance Ministry informed the Parliament on Friday(Jul 25). It also added that the government would also be able to monetize its investment in PSUs.
The realisation from strategic sale will depend on various factors including prevailing market conditions at the time of actual sale.
The government also made it clear that it did not consider profitability as a criteria for strategic disinvestment over the last two years. Of five PSUs whose strategic disinvestment was successfully completed, three are listed entities.
The Finance Ministry also informed Parliament on 22 July that in 2018-19, the proceeds from disinvestment were ₹84,972 crore