Indianmandarins has learnt that a detailed report on the merger of three Central PSUs Metals and Minerals Trading Corporation of India (MMTC), State Trading Corporation (STC India Ltd) & Project & Equipment Corporation of India Ltd (PEC), that fall under the administrative control of Department of Commerce, may be submitted by 30th June. Reportedly, Crisil is doing a study on merger options and methodology of these PSUs. The PSUs and the Ministry have already started aligning their operations to meet the end goal which may be supported by the fact that State Trading Corporation of India Ltd (STC), has stopped all payments except salary to its employees citing its "prevailing financial position."
In fact, the Dept of Commerce had recently sought to keep itself away from certain non-core areas including administrative control over Public Sector Undertakings such as MMTC, STC, and PEC so that it could focus more on 'core focus areas' such as trade negotiations and foreign trade policy formulation.
As reported earlier by Indianmandarins, the Commerce Ministry has been considering a proposal to merge commodity boards and set up an umbrella organization to improve production and exports of plantation crops like tea, coffee, rubber, tobacco, and spices.
The merger of similarly placed CPSEs and their restructuring and strategic disinvestment are top on the NaMo Govt's priority list to streamline the business activities for better performance.
CCEA, in its meeting held on 14th February 2016, had approved the proposal pertaining to the procedure and mechanism for strategic disinvestment of CPSEs classified as 'high priority' and 'low priority' on the basis of their functions relating to national security or otherwise. The above-mentioned three CPSEs fall under a 'low priority' category and are all set to be merged with similarly placed CPSEs.
The government is said to have broadly devised four methods of strategic disinvestment of Central Public Sector Enterprises which is being implemented in a phased manner. The Commerce Ministry's move to merge MMTC, STC and PEC appear to be the part of this decision.
Earlier in February, the Government announced its plans to exit its holding in three PSUs - Bharat Pumps & Compressors, Bridge & Roof Co, and Hindustan Fluorocarbons - by selling its stake to strategic buyers.
Besides, armed with the 2017-18 Budget proposal of merger and acquisitions between PSUs, the Finance Ministry wants to merge four PSUs -- Hindustan Prefab, Engineering Projects (India) Ltd, HSCC (India) Ltd and National Projects Construction Corporation -- with similarly-placed CPSEs.
The government intends to divest 100 per cent equity in Bharat Pumps &
Merger of 03 PSUs expected shortly
By IndianMandarins - 2017-06-28 11:06:26
Indianmandarins has learnt that a detailed report on the merger of three Central PSUs Metals and Minerals Trading Corporation of India (MMTC), State Trading Corporation (STC India Ltd) & Project & Equipment Corporation of India Ltd (PEC), that fall under the administrative control of Department of Commerce, may be submitted by 30th June. Reportedly, Crisil is doing a study on merger options and methodology of these PSUs. The PSUs and the Ministry have already started aligning their operations to meet the end goal which may be supported by the fact that State Trading Corporation of India Ltd (STC), has stopped all payments except salary to its employees citing its "prevailing financial position."
In fact, the Dept of Commerce had recently sought to keep itself away from certain non-core areas including administrative control over Public Sector Undertakings such as MMTC, STC, and PEC so that it could focus more on 'core focus areas' such as trade negotiations and foreign trade policy formulation.
As reported earlier by Indianmandarins, the Commerce Ministry has been considering a proposal to merge commodity boards and set up an umbrella organization to improve production and exports of plantation crops like tea, coffee, rubber, tobacco, and spices.
The merger of similarly placed CPSEs and their restructuring and strategic disinvestment are top on the NaMo Govt's priority list to streamline the business activities for better performance.
CCEA, in its meeting held on 14th February 2016, had approved the proposal pertaining to the procedure and mechanism for strategic disinvestment of CPSEs classified as 'high priority' and 'low priority' on the basis of their functions relating to national security or otherwise. The above-mentioned three CPSEs fall under a 'low priority' category and are all set to be merged with similarly placed CPSEs.
The government is said to have broadly devised four methods of strategic disinvestment of Central Public Sector Enterprises which is being implemented in a phased manner. The Commerce Ministry's move to merge MMTC, STC and PEC appear to be the part of this decision.
Earlier in February, the Government announced its plans to exit its holding in three PSUs - Bharat Pumps & Compressors, Bridge & Roof Co, and Hindustan Fluorocarbons - by selling its stake to strategic buyers.
Besides, armed with the 2017-18 Budget proposal of merger and acquisitions between PSUs, the Finance Ministry wants to merge four PSUs -- Hindustan Prefab, Engineering Projects (India) Ltd, HSCC (India) Ltd and National Projects Construction Corporation -- with similarly-placed CPSEs.
The government intends to divest 100 per cent equity in Bharat Pumps &
