Union Finance Ministry is at it again. The North-Block higher
ups are reported to have gone to the drawing-board to rework the strategic sale
mechanism for quite a few centrally controlled Public Sector Enterprises. Â The idea is to augment resources and add a whopping Rs 90,000
crores to the State exchequer by off loading select CPSEs in the current fiscal
year. This is about Rs 5,000 crores more than what the Government could gain
through disinvestment during the last fiscal. Â The step is meant to ensure straightaway sale of CPSEs in
four months or so from the date of issuing intent with papers to likely
investors. Officials believe that the Government move will speed up the process
of disinvestment. Â For loss making giants like Air India another two months are
likely to be given so that the sale process is complete in six months from the
date of issuing Preliminary Information Memorandum, or PIM, regarding the
company. Â As of now there is no fixed deadline for concluding such
sales of state-owned companies and the process is viewed as slow, tardy and
cumbersome. Ministry officials call the new steps as streamlining where the
fate of the Government-owned company could be decided either way in four months
time. Â The Department of Investment and Public Asset Management
wants to focus on outright sale of select CPSEs since this has been pending for
long. The department has identified 35 units with the help of NITI Aayog for
sale. These include both profit and loss-making enterprises. Â Air India tops among the companies shortlisted for strategic
sale and so is its subsidiary AIATSL. Others include BEML, Scooters India,
Bharat Pumps Compressors, and Bhadrawati, Salem and Durgapur units belonging to
SAIL. Â The Aayog has also given its nod for dispensing with Hindustan
Fluorocarbon, Hindustan Newsprint, HLL Life Care, Central Electronics, Bridge
& Roof India, Nagarnar Steel plant of NMDC, units of Cement Corporation of
India and ITDC. Â The disinvestment of several State units has been lingering
despite the process for this often commenced over a year ago from now. DIPAM
had issued PIMs for sale of Pawan Hans, Bharat Pumps & Compressors Ltd,
Hindustan Fluorocarbons Ltd in April 2018, while cases like Scooters India,
Hindustan Newsprint are pending since March last year.
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CPSEs: FinMin to reset the timetable for divestment
By IndianMandarins - 2019-05-11 23:18:28
Union Finance Ministry is at it again. The North-Block higher
ups are reported to have gone to the drawing-board to rework the strategic sale
mechanism for quite a few centrally controlled Public Sector Enterprises.
Â
The idea is to augment resources and add a whopping Rs 90,000 crores to the State exchequer by off loading select CPSEs in the current fiscal year. This is about Rs 5,000 crores more than what the Government could gain through disinvestment during the last fiscal.
Â
The step is meant to ensure straightaway sale of CPSEs in four months or so from the date of issuing intent with papers to likely investors. Officials believe that the Government move will speed up the process of disinvestment.
Â
For loss making giants like Air India another two months are likely to be given so that the sale process is complete in six months from the date of issuing Preliminary Information Memorandum, or PIM, regarding the company.
Â
As of now there is no fixed deadline for concluding such sales of state-owned companies and the process is viewed as slow, tardy and cumbersome. Ministry officials call the new steps as streamlining where the fate of the Government-owned company could be decided either way in four months time.
Â
The Department of Investment and Public Asset Management wants to focus on outright sale of select CPSEs since this has been pending for long. The department has identified 35 units with the help of NITI Aayog for sale. These include both profit and loss-making enterprises.
Â
Air India tops among the companies shortlisted for strategic sale and so is its subsidiary AIATSL. Others include BEML, Scooters India, Bharat Pumps Compressors, and Bhadrawati, Salem and Durgapur units belonging to SAIL.
Â
The Aayog has also given its nod for dispensing with Hindustan Fluorocarbon, Hindustan Newsprint, HLL Life Care, Central Electronics, Bridge & Roof India, Nagarnar Steel plant of NMDC, units of Cement Corporation of India and ITDC.
Â
The disinvestment of several State units has been lingering despite the process for this often commenced over a year ago from now. DIPAM had issued PIMs for sale of Pawan Hans, Bharat Pumps & Compressors Ltd, Hindustan Fluorocarbons Ltd in April 2018, while cases like Scooters India, Hindustan Newsprint are pending since March last year.
