The central government has prepared a plan to bring down its stake in some large central public sector enterprises (CPSEs) to below 51% in FY20 in order to raise funds to make up for tepid revenue growth. On the disinvestment radar this fiscal are public sector units (PSUs) like Indian Oil Corp. Ltd (IOC), NTPC Ltd, Bharat Petroleum Corp. Ltd (BPCL), GAIL Ltd, Engineers India, Container Corporation and Nalco, said The Indian Express reported.
The report also added that the stake sale could happen either through the OFS (offer for sale) or ETF (exchange-traded fund) route, with a possibility of strategic stake sale of at least one of the PSUs.
The Centre currently holds below 55% stake in these PSUs, but it can still manage to retain a majority stake in these firms after disinvestment, as significant stakes in these companies are held by government-controlled institutions such as Life Insurance Corporation of India (LIC) or other large public sector firms (through CPSE cross-holdings). Read More
Latest posts by news18 (see all)
- Delhi Metro to Run Metrolite Trains Between Rithala and Narela Alongside Other Vehicles - October 19, 2019
- Railway Minister Piyush Goyal Flags off 9 ‘Sewa Service’ Trains Connecting Small Towns to Major Cities - October 15, 2019
- Delhi Metro Yellow, Blue and Red Lines to Switch to Eight Coaches - October 15, 2019