November 14, 2009 1:50 PM

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Govt consults ministries on PSU disinvestment

The Government has said that it has begun consultations with various ministries for sale of stakes in the public sector units. Briefing the media, Disinvestment Secretary, Sunil Mitra said 60 Central Public Sector Enterprises fulfil the criteria for disinvestment. Of these, 10 are listed Public Sector companies and 50 are unlisted. Mr. Mitra said he is in touch with ministries of steel, coal and telecom to explore possibility of stake sale in SAIL, Coal India and BSNL. He also indicated that sale of shares in NTPC, Satluj Jal Vidyut Yojana and Rural Electrification Corporation is expected in the current financial year as approval for their sale has already been given. He said, the disinvestment of 5.25 per cent equity in NTPC had fecthed 2700 crore rupees in 2004 and a further 5 per cent disinvestment could bring 8100 crore rupees due to increase in the value after listing. <br/>The Cabinet had recently decided to off load 10 per cent stakes of listed profitable CPUs for public ownership and listing of all profit making CPSUs. It was decided that the funds raised through the selling of these stakes will go to the capital expenditure for social sector schemes.<br/>

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