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

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

India stopped jailing people for paperwork. Now comes the hard part

A small pharmacist in Rajkot neglects to change a notice in his store under a little-known clause of a public health law. This was not only a non-compliance matter, but also a criminal offence, and a jail sentence was the punishment under the old system. Not a fine. Not a warning. Jail. Now scale