1. PSUs in sectors like oil, energy marked for stake sale: Govt

PSUs in sectors like oil, energy marked for stake sale: Govt

Eyeing Rs 56,500 crore from disinvestment this fiscal, the government has identified some PSEs in sectors like oil, energy and capital goods for selling its stake, Parliament was informed today.

By: | Published: April 26, 2016 6:55 PM

Eyeing Rs 56,500 crore from disinvestment this fiscal, the government has identified some PSEs in sectors like oil, energy and capital goods for selling its stake, Parliament was informed today.

“As part of the strategy to keep stocks readily available for transaction to take advantage of market conditions without any loss of time, the government has identified some CPSEs for disinvestment during the year in sectors like mineral and metal, oil, energy, capital goods as well as some mid-size and small stocks,” Minister of State for Finance Jayant Sinha said in a written reply in Rajya Sabha.

In line with the Budget 2015-16, the Cabinet Committee on Economic Affairs has approved the structure for ‘strategic disinvestment’ of Central Public Sector Enterprises (CPSEs), he said.

Requisite instructions in this regard have been issued in February to all departments and ministries concerned, including NITI Aayog, which has been mandated to advise the government to identify CPSEs for strategic disinvestment.

The Budget Estimate for disinvestment for 2016-17 is Rs 56,500 crore. This comprises Rs 36,000 crore as disinvestment receipts from CPSEs and Rs 20,500 crore from strategic disinvestment.

Replying to another question related to taping of idle cash of PSUs, Sinha said they have the option of capital restructuring and adopts such practices as a part of their professional financial management.

“In view of such offers, the government may agree to tender/offer equity, if a CPSE decides to buy-back its own shares in the process,” he said.

The CPSEs take a view on the possible buy-back as a part of their financial management in their Board meetings, he said.

They follow a defined procedure and time-frame for buy-back process in terms of the extant provisions of Indian Companies Act and SEBI guidelines/regulations, Sinha said.

“Government considers these offers for buy-back by the CPSEs on merits on a case to case basis and may participate in the process as an investor,” he said.

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