‘In-principle’ approval for strategic disinvestment of 24 CPSEs

Disinvestment of government’s shareholding through listing and minority stake sale in CPSEs is undertaken to unlock the true value of company

GN Bureau | January 9, 2018


#Disinvestment   #PSU   #CPSEs  

As part of the strategy to keep shares readily available for transaction to take advantage of market conditions without any loss of time, the government has identified certain CPSEs, including those in West Bengal, for minority stake sale in sectors like mineral & metal, oil & energy, capital goods as well as some mid-size and small stocks.

Union minister Pon Radhakrishnan informed parliament that the government has given ‘in-principle’ approval for strategic disinvestment of 24 CPSEs/Units of CPSEs, including Bridge & Roof Company (India) Limited, Kolkata, West Bengal. However, after completion of the process, specific approval of government will be sought in each case.

Disinvestment of government’s shareholding through listing and minority stake sale in CPSEs is undertaken to unlock the true value of company, promote public ownership and higher degree of accountability.

In case of strategic disinvestment of CPSEs, it is expected that the strategic buyer will bring in funds/technology/new management etc. for the optimum development of business potential and growth of the companies. Post strategic disinvestment, the growth in companies would be able to generate higher economic activity.

The terms and conditions of the strategic sale suitably address employees’ concerns in the Share Purchase Agreement (SPA) / Share Holders Agreement (SHA) to be signed by the Government with the strategic buyer.
 

Comments

 

Other News

How toll policies are redefining the highway journeys

With the phenomenal growth in National Highways, queues at toll plazas used to affect commuters. However, over the last decade, tolling has undergone a major technological transformation, bringing faster movement and significant ease for road users. Building on this progress, year 2025 saw further people-c

From vulnerabilities to empowerment: Building resilience for small and marginal farmers

India’s small and marginal farmers are at the centre of a paradox in agrarian economy. They are the backbone of the food economy, but they are the most vulnerable stakeholders within agricultural economy. Among the 126 million farmers in India today, nearly makes 86% operate on small and marginal hol

Concerns over Mumbai air pollution ahead of Marathon

Environmental organisation Awaaz Foundation has flagged serious concerns over deteriorating air quality in Mumbai and the potential health risks it poses to participants of the Tata Mumbai Marathon scheduled for January 18. It has urged civic and pollution control authorities to conduct advance air quality

From darkness to demand: India’s power sector at a policy crossroads

India’s progress in electricity access over the past two decades represents one of the most consequential public infrastructure transformations globally. Yet, as policymakers now confront issues of reliability, financial sustainability, and grid stability, experts argue that the next phase of reform

2026: How AI is transforming everyday life and work in India

Artificial Intelligence is driving a new wave of innovation that touches every part of daily life, from healthcare and farming to education, governance, and climate prediction. It helps doctors diagnose diseases faster, assists farmers in making data-driven decisions, improves learning outcomes for student

Charting the contours of India’s Africa outreach

Prime minister Narendra Modi’s state visit at the end of the year 2025 to Ethiopia represented a notable point in the development of India-Africa relations. At a time of escalated geopolitical contest, renewed commitment to South-South cooperation and Africa’s expanding strategic prominence, th


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter