NITI Aayog proposes closure of 26 ailing PSUs -Governance Now

NITI Aayog proposes closure of 26 ailing PSUs

It also wants the government to cut PSU stake to 49% in one shot

GN Bureau | June 15, 2016

#PSU #public sector undertaking #NITI Aayog #CPSE #Air India

NITI Aayog has recommended disinvestment of central public sector enterprises (CPSEs) such as Air India after they are revived. It has also recommended immediate winding up 26 state-run companies and leasing out several loss-making hotels.

Air India, Chennai Petroleum, Madras Fertiliser and FACT are on the list of 22 public sector companies which have been identified for strategic sale after they are revived, according to a news report in Times of India.

NITI Aayog, which has been tasked with preparing a roadmap for ailing CPSEs, is also working on a plan for the government to cut their holding in listed CPSEs to 49% in one shot instead of shedding its stake in small lots.

This is meant for listed companies where the government holds around 60 percent stake. In several PSUs the centre has over 75 percent stake and the new Sebi rules require it to down to 49 percent. This move is expected to ensure better market capitalisation of the equity.

NITI Aayog has been tasked to identify the PSUs that can be sold outright during the current fiscal. It will also advise the government on mode of sale, and suggesting methods on valuation of the company.

The NDA government has set an ambitious target to collect Rs 56,500 crore through disinvestment in PSUs in the current financial year. Out of which Rs 36,000 crore is expected to come from the reduction in the centre's stake in listed CPSEs through stake sales and buybacks, while Rs 20,500 crore is expected to come from strategic sales.

Comments

Other News

Careless whispers and the impossible trinity

Time can never mend, the careless whispers of … As the RBI marches ahead, for the upcoming monetary policy meeting this June, whispers from the corridors echo around several policy options to defend the rupee – by deploying forex reserves, raising in

Bullet Train Project: Third mountain tunnel breakthrough achieved

A major engineering milestone has been achieved in the Mumbai–Ahmedabad Bullet Train Project with the successful breakthrough of the third mountain tunnel (MT-07) at Ambesari village in Dahanu Taluka of Palghar district, Maharashtra. With this achievement, three mountain

Supreme Court gets five new judges

Five new judges were appointed to the Supreme Court of India on Monday. "Vide Notifications of even number dated 01.06.2026, in exercise of the powers conferred by clause (2) of Article 124 of the Constitution of India, the Hon’ble President of India is pleased to appoint (i) Shri

Astonishing breadth and depth of ancient Indian knowledge systems

The Greatest Books of Ancient India: Incredible Ideas about Science, Music, Maths, Art and More By Dr. Pradeep Chakravarthy and Dr. R. Thiagarajan Hachette India, 208 pages, Rs 399

Strong El Nino threat over India`s monsoon, food & water security

India is heading into the southwest monsoon season this year under the shadow of a rapidly strengthening El Nino, with meteorologists warning that the climate phenomenon could significantly disrupt rainfall patterns, intensify heat stress and place additional pressure on the country’s agriculture-d

How corporates can nudge real change

The Business Of Business Is (Not) Just Business: How Behavioural Tools Can Drive Real Change Edited by Sutapa Banerjee, with Foreword by Nadir Godrej HarperCollins, 336 pages, Rs 699