Cabinet expected to clear stake sale in 20 PSUs -Governance Now

Cabinet expected to clear stake sale in 20 PSUs

There would also be detailed review on the plan to shed 10 percent stake in public sector insurance companies

GN Bureau | October 18, 2016

#PSUs #stake sale #Container Corporation #Bharat Earth Movers #Scooters India #Niti Aayog

The cabinet is expected to clear the plan to cut majority stake in around 20 state-run enterprises on Wednesday. These also include several profit-making companies, signalling a restart of equity sale in public sector undertakings (PSUs) after a gap of 12 years.

Also, there would be a detailed review of the plan to shed 10 percent stake in public sector general insurance companies. This is aimed at helping the insurers raise funds to take on private sector players, according to a news report published in Times of India. The PSUs identified include profit making Bharat Earth Movers and others such as loss-making Scooters India.

NITI Aayog, the government think-tank that firmed up the disinvestment policy for the Narendra Modi government, had recommended strategic sale in several PSUs, that would result in bringing down the centre's share in these companies to under 50 percent.

Niti Aayog has argued that this model will help maximise revenue, while focusing on strategic sectors such as oil or segments where the government wants to avoid a dominant role of the private sector. As a result, the move to shed stake in Container Corporation (Concor) where the government holds nearly 57 percent stake, through the "strategic sale" route, was dropped. Concor controls nearly three-fourths of the market and is seen to be a vital link in the government's efforts to boost the logistics network.

Comments

Other News

A fiction about real-life drama behind Bollywood dramas

Actor and filmmaker Puneet Sikka comes out with a smoke-and-mirrors story decked in acerbic humour and grief. ‘Take No. 2020’ (published by Penguin India) is a story within a story about four migrant actors looking to find their feet in Bollywood till they are presented with a real-life plot tw

Sardar and the idea of ‘unity in diversity’

Vallabhbhai Patel: The Limitations of Anti-Colonial Nationalism and Electoral Politics By Rani Dhavan Shankardass Orient BlackSwan, 968 pages, Rs 2,465

Combating cyber crime

India has faced a significant rise in coordinated threats to airlines, schools, hospitals, five-star hotels this year. These threats were posted on social media or sent through text messages, multiple threat mails that were simultaneously sent to political leaders, authorities and institutions.

`DPI must ensure data privacy, cyber security, citizen-first approach`

With massive development and deployment of Digital Public Infrastructure (DPI) applied to over 700 government programs for delivering public service, India’s DPI success has improved the lives of ordinary citizens who can now avail of services at their convenience. This has helped save close to

Accountability in action: Rethinking corporate governance for PSUs

Corporate governance has long been recognised as the cornerstone for sustainable economic growth, corporate accountability, and stakeholder trust. For India, which aspires to become a USD 5 trillion economy and Vishwa-Guru (a model nation for the world), strengthening governance is imperative, in governmen

Mahayuti sweeps Maharashtra, JMM wins Jharkhand

The BJP-Shiv Sena Mahayuti has won the Maharashtra assembly elections with a comfortable margin, while the Hemant Soren-led Jharkhand Mukti Morcha has emerged clearly victorious in Jharkhand. While the counting was nearing the end Saturday evening, the party position in Maharashtra at 7 pm w