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.
 

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