1. Major divestment line up: BHEL, Oil India, EIL, NBCC, 9 rail PSUs to help fetch Rs 72,500 cr next FY

Major divestment line up: BHEL, Oil India, EIL, NBCC, 9 rail PSUs to help fetch Rs 72,500 cr next FY

The government is looking to raise close to Rs 9,000 crore by selling 10% equity stake each in the state-run companies Bharat Heavy Electricals Ltd and Oil India Ltd as part of its plan to raise funds from its equity stakes in 16 PSUs to meet its ambitious disinvestment target for the next financial year 2017-18

By: | Published: March 7, 2017 4:24 PM
department of investment, dipam, budget 2016, union budget 2016, 2016 budget news, budget news, union budget news, budget 2016 news, budget income tax, union budget 2016, income tax, budget expectations, arun jaitley, budget news india, budget india news, union budget 2016 While 10% stake in the capital goods and engineering major BHEL will fetch the government Rs 5,220 crore, the similar stake in oil explorer Oil India will earn it Rs 3,770 crore.

The government is looking to raise close to Rs 9,000 crore by selling 10% equity stake each in the state-run companies Bharat Heavy Electricals Ltd and Oil India Ltd as part of its plan to raise funds from its equity stakes in 16 PSUs to meet its ambitious disinvestment target for the next financial year 2017-18, CNBC TV18 reported on Tuesday citing a wire report, which quoted an unidentified government official.

The government could either sell the shares in the open markets, or might ask the companies to buy back the shares themselves, the news report said. While 10% stake in the capital goods and engineering major BHEL will fetch the government Rs 5,220 crore, the similar stake in oil explorer Oil India will earn it Rs 3,770 crore, according to the news report.

Indian government has undertaken strategic sale of stake in profitable PSUs to help boost up state revenue and bridge the fiscal deficit, but has repeatedly fallen short of its disinvestment targets in the past. It has a target to earn Rs 56,500 crore by divesting its stake in public sector undertakings in the current financial year 2016-17, out of which, it has already earned more than Rs 31,000 crore. It has an even more ambitious disinvestment target of Rs 72,500 crore in the next financial year.

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Further, the government is also considering asking Engineers India Ltd and NBCC to buy back shares, through which it expects to earn Rs 390 crore and Rs 280 crore, respectively.

For the next year, among marquee disinvestment projects, the government plans to launch its second CPSE ETF – the exchange-traded fund of public sector enterprises; and seeks to sell 10% equity stake each in three state-run railway companies IRCTC, Ircon and IRFC via an IPO (initial public offer) in the next financial year 2017-18.

The Ministry of Railways has listed nine more units for likely IPO, the CNBC TV18 news report said without giving details.

Earlier this year, the Union Cabinet also approved listing of five state-run general insurance companies, which is likely to begin only in the next financial year with the first listing possible by September-October.

 

  1. D
    Dev anand
    Mar 9, 2017 at 4:14 am
    They want only privatization , like east india company has did earlier. Again country going to same situation. Due to politicians pressure PSU will open their offices to their home and land, for that they have to pay more money. And later they will say PSU going to loss.
    Reply
    1. P
      Paramesha S
      Mar 7, 2017 at 12:38 pm
      Modi & Jetly Don't India by piece piece. You are w India.It's very sad sadShame to Central government.
      Reply
      1. R
        R K
        Mar 9, 2017 at 1:31 am
        Modi ji & Jaitlt Ji You are saying PSU to Pvt player . PSU are life line of this country. Most Pvt player in ths country are thief. You have housing in hand of Pvt Sector more than ten lakh middle cl are weeping in want of their booked apartment. And nobody is interested in purchasing flats from them. However you bring one scheme of DDA there are lakhs of buyers. Your financial scheme are being made by Jaitly ji Jo ek election bhee nahi Jeet sakte. He was the only person who lost election in modi wave also. W infrastructure is in Pvt Sector, Pvt bnks never finance to Pvt Sector , Pvt banks were making money in demonitisation.
        Reply

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