Govt to offload equity in HCL, 2 other PSUs in April-June

Written by PTI | New Delhi | Updated: Feb 24 2013, 17:05pm hrs
GovernmentGovt to offload equity in HCL, 2 other PSUs in April-June. (Reuters)
Seeking to avoid bunching of PSU stake sales towards the end of this fiscal, government has decided to kick off disinvestment programme in the April-June quarter of 2013-14 by offloading equity in Hindustan Copper (HCL), THDCIL and NEEPCO.

"Draft CCEA note has been moved for inter-ministerial comments for 10 per cent stake sale in THDCIL and NEEPCO. These are small issues and to be pushed for the first quarter itself," official sources said.

Tehri Dam & Hydro Electric Project (THDCIL) is a joint venture between the centre and the Uttar Pradesh government, while North Eastern Electric Power Corporation Ltd (NEEPCO) is owned by central government.

The government has already identified around 20 companies for stake sale and sources said that 2013-14 budget is likely to fix disinvestment mop-up at Rs 40,000 crore.

"Work has already started for disinvestment in next fiscal. Officials of the Disinvestment Department have started meeting the administrative ministries to decide on future course of action," the source said.

Amongst the companies which have been identified for disinvestment next fiscal include Engineers India Ltd (EIL), Coal India, Indian Oil, PGCIL and NHPC.

Apart from this, Cabinet approval has already been accorded for disinvestment in Bhel, Neyveli Lignite, Hindustan Aeronautics.

Also, the second tranche of HCL stake sale is likely in the April-June quarter. The government had divested 5.58 per cent stake in HCL in the first tranche that happened in November last year.

The government had fixed Rs 30,000 crore as disinvestment target for the current fiscal. So far it has been able to realise Rs 21,504 crore through stake sale in five companies.

Four more companies -- SAIL, NALCO, MMTC and Rashtriya Chemical and Fertilisers -- are in the government list for stake sale in the current fiscal.