The government is considering a proposal to disinvest 11 more central public sector companies, including Delhi's Ashoka Hotel, MTNL's tower business and Bharat Heavy Electricals (BHEL) through long-term lease, asset and strategic sale. According to NITI Aayog's latest sell-off list, around 50 companies have now been recommended for disinvestment via the strategic sale and leasing route. Sources say that proposals were being studied and a final decision will be taken by the Cabinet Committee on economic affairs; however, they defended the movement on strategic sale so far, arguing that the government was on course to complete some of the transactions, including Air India, where 76% equity is being offered for sale compared to the recommendation of 100%.
Sources said NITI Aayog has recommended leasing out of Hotel Ashok for 60 years to get the worn down property back to shape.
Among the other PSUs under the fifth disinvestment plan, NITI Aayog has listed BHEL, citing erosion in its market value over the last few years compared to private sector players such as Larsen & Toubro. BHEL's market cap was estimated at 27,535 crore, compared to nearly Rs 1.2 lakh crore for L&T. In May 2010, L&T's market cap was around Rs 95,000 crore, while BHEL was at Rs 1.2 lakh crore.
But unlike several other PSUs, the think tank has suggested that the government should reduce its stake in BHEL from 63% to 49% by offloading shares in the market, before diluting it further.
Economist Rajiv Kumar headed panel has also recommended that government should begin selling assets in MTNL. The proposal is to hive off the telecom PSU's towers into a separate company and sell off the entity. NITI Aayog has not given any roadmap for BSNL that reported loss of around Rs 4,800 crore in 2016-17.
Companies like National Textiles Corporation, Hindustan Copper and Telecommunications Consultants (India) may be put up for strategic sale with NITI Aayog recommending that government could exit most of these PSUs.
Divestment of 11 more CPSEs soon
By IndianMandarins - 2018-05-28 10:35:10
The government is considering a proposal to disinvest 11 more central public sector companies, including Delhi's Ashoka Hotel, MTNL's tower business and Bharat Heavy Electricals (BHEL) through long-term lease, asset and strategic sale. According to NITI Aayog's latest sell-off list, around 50 companies have now been recommended for disinvestment via the strategic sale and leasing route. Sources say that proposals were being studied and a final decision will be taken by the Cabinet Committee on economic affairs; however, they defended the movement on strategic sale so far, arguing that the government was on course to complete some of the transactions, including Air India, where 76% equity is being offered for sale compared to the recommendation of 100%.
Sources said NITI Aayog has recommended leasing out of Hotel Ashok for 60 years to get the worn down property back to shape.
Among the other PSUs under the fifth disinvestment plan, NITI Aayog has listed BHEL, citing erosion in its market value over the last few years compared to private sector players such as Larsen & Toubro. BHEL's market cap was estimated at 27,535 crore, compared to nearly Rs 1.2 lakh crore for L&T. In May 2010, L&T's market cap was around Rs 95,000 crore, while BHEL was at Rs 1.2 lakh crore.
But unlike several other PSUs, the think tank has suggested that the government should reduce its stake in BHEL from 63% to 49% by offloading shares in the market, before diluting it further.
Economist Rajiv Kumar headed panel has also recommended that government should begin selling assets in MTNL. The proposal is to hive off the telecom PSU's towers into a separate company and sell off the entity. NITI Aayog has not given any roadmap for BSNL that reported loss of around Rs 4,800 crore in 2016-17.
Companies like National Textiles Corporation, Hindustan Copper and Telecommunications Consultants (India) may be put up for strategic sale with NITI Aayog recommending that government could exit most of these PSUs.
