New Delhi, November 20
To boost revenue collection in the backdrop of sluggish economy, the government today decided on selling its stake in blue chip public sector companies, including petroleum giant BPCL, shipping firm SCI and on-land cargo mover Concor. It also decided to cut shareholding in select public sector firms below 51 per cent, though it will continue to have management control.
Informing about the decisions of the Cabinet Committee on Economic Affairs (CCEA) chaired by the PM, Union Finance Minister
Nirmala Sitharaman said it had been decided to offload government’s entire 53.29 per cent stake along with transfer of management control of country’s second-largest state-owned refinery and marketing company Bharat Petroleum Corp Ltd (BPCL).
But before divesting the government holding in the company, Assam-based Numaligarh refinery would be taken out of its fold, she said. This refinery would be handed over to a public sector oil company to allay concerns of the North East over the move. The CCEA approved the sale of 53.75 per cent out of government holding of 63.75 per cent stake in the Shipping Corporation of India and 30.9 per cent stake in the Container Corp of India. The government holds 54.80 per cent in Concor. Besides, the government would sell its entire holding in THDC India and North Eastern Electric Power Corp Ltd to state-owned power utility NTPC Ltd, the minister said. In tandem with the decision on strategic sale of five companies, the government decided to reduce its stake in select PSUs, such as Indian Oil Corp, to below 51 per cent while continuing to retain management control.
“The management control will continue to be retained with the government after considering equity held by other state-run companies in the divested firm,” the minister said. The government holds 51.5 per cent stake in IOC and another 25.9 per cent through state-owned LIC, ONGC and OIL. The government can potentially sell 26.4 per cent stake for about Rs 33,000 crore. — TNS
Proceeds to help meet fiscal deficit target
Go-ahead to biggest privatisation drive
- 53.29 per cent stake in BPCL worth Rs 63,000 cr
- 30.8 per cent stake in Concor worth Rs 10,800 cr
- Stake sale in SCI to fetch just over Rs 2,000 crore
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