NITI Aayog proposes closure of 26 ailing PSUs

It also wants the government to cut PSU stake to 49% in one shot

GN Bureau | June 15, 2016


#PSU   #public sector undertaking   #NITI Aayog   #CPSE   #Air India  


NITI Aayog has recommended disinvestment of central public sector enterprises (CPSEs) such as Air India after they are revived. It has also recommended immediate winding up 26 state-run companies and leasing out several loss-making hotels.
 
Air India, Chennai Petroleum, Madras Fertiliser and FACT are on the list of 22 public sector companies which have been identified for strategic sale after they are revived, according to a news report in Times of India.
 
NITI Aayog, which has been tasked with preparing a roadmap for ailing CPSEs, is also working on a plan for the government to cut their holding in listed CPSEs to 49% in one shot instead of shedding its stake in small lots.
 
This is meant for listed companies where the government holds around 60 percent stake. In several PSUs the centre has over 75 percent stake and the new Sebi rules require it to down to 49 percent. This move is expected to ensure better market capitalisation of the equity.
 
NITI Aayog has been tasked to identify the PSUs that can be sold outright during the current fiscal. It will also advise the government on mode of sale, and suggesting methods on valuation of the company.
 
The NDA government has set an ambitious target to collect Rs 56,500 crore through disinvestment in PSUs in the current financial year. Out of which Rs 36,000 crore is expected to come from the reduction in the centre's stake in listed CPSEs through stake sales and buybacks, while Rs 20,500 crore is expected to come from strategic sales.
 

Comments

 

Other News

“Game” of cricket: Governance lessons from India’s favourite sport

India’s cricket journey is more than a record of sporting triumphs; it is a live case study in strategy, incentives, and equilibrium: the very foundations of Game Theory. As India prepares for its eight-match white-ball series against Australia, the world’s most-watched rivalry will again unfol

In this year of extreme rainfall, climate change has amplified deluge

Southwest Monsoon 2025 recently concluded with ‘above-normal’ rainfall to the tune of 108% of the long-period average (LPA). This is second consecutive year in the last decade to record above normal rains. Climate change has a critical role in driving the rainfall on the higher side, according

This Diwali, as we clean our homes, let`s clean our digital lives too

Every year, as Diwali approaches, I begin my annual ritual of cleaning – opening drawers, cupboards, and those mysterious “boxes of everything” we all seem to have. It starts as an act of tidying up, but it always turns into a little journey of rediscovery. Among the old receipts and forg

Sea leave rise: Multi-level adaptive governance needed to meet the challenge

By the end of this century, global sea levels may rise by more than 1 metre, and the mean sea level rise is expected to increase by 180 mm. Climate change is one of the gravest issues before us and one of the most pressing issues linked to the climate change is the sea level rise. The coastal communities a

Rethinking the funder-practitioner relationship in capacity development

The Human Capacity Development landscape in the social development context has evolved significantly over the years. From the more simplistic term “training,” it has now developed into a much more nuanced concept, “Competency-Based Capacity Building” (CBCB). Yet, one question persis

The economics of smart cities

Imagine a city where trash isn’t trash, energy isn’t wasted, and economic prosperity isn’t achieved at the cost of human wellbeing. A city where every rupee invested in infrastructure yields returns not just in roads and buildings, but in health, jobs, equality, and dignity. Smart city pr

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter