Govt kicks-off big ticket PSU sale

Tribune News Service

Advertisement

New Delhi, November 22

The government today kicked off its big ticket disinvestment plan by issuing request for proposals (RFPs) as part of a two-stage sell-off plan. The next stage will be roadshows to generate bidder interest for a move that will play a major part in paring the government’s budgetary deficit.

With four full months to go for the current fiscal to end, the government has met only 15 per cent of the disinvestment target. The sale of the BPCL will be crucial as its 53 per cent government stake could garner up to Rs 65,000 crore based on the trend of earlier sales of its shares. The sale of Concor stake could fetch Rs 11,000 crore while the SCI should get at least Rs 1,300 crore. The remaining PSU sale could help the government reach its disinvestment target of Rs 1.05 lakh crore for the current fiscal.

The request for proposal for the BPCL, the jewel in the current PSU sale, is for selling the government stake of 53.29 per cent except its equity shareholding of 61.65 per cent in the Numaligarh refinery.

DIPAM (Department of Investment & Public Asset Management) is the nodal department for all decisions on strategic disinvestment.

For Concor, the RFP is for reducing the government share from 54.8 per cent to 30.8 per cent besides transferring management control to a strategic buyer. For Shipping Corporation of India, NEEPCO (North Eastern Electric Power Corporation), NTPC and THDC, the RFPs are for Asset Valuators, Transaction Advisors and Legal Advisors.

==============

Target Rs1.05 lakh cr

* The sale of the BPCL will be crucial as its 53 per cent government stake could garner up to Rs 65,000 crore.

* Concor stake sale to fetch Rs 11,000 crore while the SCI should get at least Rs 1,300 crore.

* The remaining PSU sale could help the government reach its disinvestment target of Rs 1.05 lakh crore