Government to push divestment plans despite poor market
23 Feb 2010
The government plans to list all profitable central public sector enterprises (CPSEs) not meeting the mandatory public shareholding requirement of 10 per cent.
"All CPSEs having positive networth, no accumulated losses and having earned net profit for three preceding consecutive years, are to be listed through public offer of government shareholding or issue of fresh equity by the company or a combination of both," Arun Yadav, minister of state for heavy industries and public enterprises, informed the Rajya Sabha ina written reply today.
The government plans to offload stakes in NMDC, which is expected to raise Rs13,500 crore ($3 billion) by end-March.
The government has completed divestments of shareholding in NTPC Ltd (5 per cent) earlier this month. Disinvestments in Rural Electrification Corporation Ltd (5 per cent) and National Mineral Development Corporation Ltd (8.38 per cent) and Satluj Jal Vidut Nigam Ltd (SJVN) (10 per cent) through public offer in the domestic market is under implementation.
The proceeds from disinvestment would be channelised into the National Investment Fund that would be utilised for meeting the capital expenditure requirements of selected social sector programmes decided by the Planning Commission/Department of Expenditure. The status quo ante will be restored from April 2012, the minister said.