‘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

3 out of 4 Covid-19 patients in 21-60 yrs age group

Contrary to the perception that the elderly are more at risk from Covid-19, in India as many as 41.88% of corona positive cases are between 21 to 40 years of age. Also, 32.82% positive cases are between 41 to 60 years, followed by 16.69% cases above the age of 60 years and 8.61% coronavirus positive cases

Why everyone should wear mask

In view of the increasing number of COVID -19 cases in the country, the ministry of health and family welfare (MoHFW) has now advised that everyone must voluntarily wear a mask and especially those living in densely populated areas.   Not just as a matter of maintaining personal hygiene

Fighting Covid-19, India has realized its collective strength: PM

In the face of the Covid-19 pandemic, people of India have realized their collective strength, prime minister Narendra Modi said in a short video message Friday morning. He also urged people to light lamps Sunday night as a gesture of this collectivity. “Today marks nine days of the na

COVID-19 demobilisation: Lessons for public governance

Demobilization, like its predecessor – demonetization, is another decision gone bad in implementation.  In both instances a careful public administrative action through its governance systems could have saved the magnitude of impact particularly on the most vulnerable sections of the society. Th

Don’t fear Corona, fight it

In a bid to break the “chain of transmission” of the deadly Covid-19, India, a country with more than 1.3 billion population, observed a voluntary ‘Janata Curfew’ on March 22. This has been followed by a 21-day, nationwide lockdown from March 24. Prime minister Narendra Modi also re

Sci-Tech Empowered Committee set up for COVID-19

To take speedy decisions on research and development for Sars-Cov-2 virus and COVID-19, the government has constituted a Science and Technology Empowered Committee. The committee, set up on March 29 and chaired by Niti Aayog member, professor Vinod Paul and professor K Vijay Raghavan, princi



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter