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

Ahmedabad district railway network to be expanded

The Cabinet Committee on Economic Affairs, chaired by prime minister Narendra Modi, on Wednesday approved the Ahmedabad (Sarkhej) – Dholera Semi High-Speed Double Line project of Ministry of Railways with total cost of Rs. 20,667 crore (approx.). It will be Indian Railways 1st semi high-speed project

Indian Ocean more contested than ever: Western Naval Command Chief

The Indian Ocean is becoming increasingly contested and strategically significant as the Indo-Pacific emerges as the defining geopolitical theatre of the 21st century, Vice Admiral Krishna Swaminathan, Flag Officer Commanding-in-Chief of the Western Naval Command, has said. Spe

Why the judiciary needs much more than four more judges

India has a particular form of governance theatre: the bold declaration that appears to be action but is actually a way of avoiding action. The Union Cabinet on May 5 approved a Bill to increase the sanctioned strength of the Supreme Court from 34 to 38. The decision has been touted as a step toward judici

Wisdom stories that don’t preach but encourage reflection

The Foundation Of A Fulfilling Life: Lessons from Indian Scriptures Deepam Chatterjee Aleph Books, 264 pages, Rs 899

Citizens of the Bay: Why BIMSTEC matters now

The international order is drifting into a dangerous grey zone as the very powers that built today`s multilateral system begin to chip away at it. The United States has increasingly walked away from global rules and forums when they no longer suit its interests, while China has rushed to fill the vacuum on

PM salutes armed forces on one year of Operation Sindoor

Prime minister Narendra Modi on Thursday saluted the courage, precision and resolve of the armed forces on the completion of one year of Operation Sindoor. The PM said that the armed forces had given a fitting response to those who dared to attack innocent Indians at Pahalgam.&