-
Budget 2016: Finance Ministry today said the rechristened Department of Disinvestment will ensure that the unlisted PSUs with huge cash piles either pay special dividend or buyback government shares and gradually move towards listing. In Budget 2016-17, the government had decided to rename the Department of Disinvestment as Department of Investment and Public Asset Management (DIPAM) and its responsibilities would include efficient management of the government investment in CPSEs. "Public asset management would also include buyback of shares. Companies which are 100 per cent owned by the government, which have lots of cash, if they do not have capital expenditure plan and they are sitting on idle cash year after year, they should either pay special dividend or buyback government shares," Economic Affairs Secretary Shaktikanta Das said at a Ficci event here.
-
DIPAM did not elaborate on the size of the IPO in these companies.
-
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.
-
Budget 2016: Further Reserve Bank has announced amendments to recognise more balance sheet items of the state run lenders as tier-I equity capital. "Budget has announced Rs 25,000 crore for capital infusion. RBI has also issued circular where additionally upwards of Rs 25,000 crore Tier 1 capital gets added to the balance sheets of PSU banks. So we are looking at about Rs 50,000 crore is on the table. Reclassification (by RBI) is very very reasonable. The assets of PSBs need to be revalued from time to time," Das added. He said the central bank and ministry are working together on NPAs and the problem is being very meticulously and carefully addressed. Besides, banks are taking special efforts for recoveries.
e-Aadhaar app launch in India: Easily update your date of birth, address and phone number instantly with the upcoming all-in-one app
