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.