Also aims to sell-off sick PSUs whose list it is preparing
With three months in the current financial year having already lapsed, the newly formed BJP-led NDA Government is keen to kick start the disinvestment exercise at the earliest and according to sources, public sector undertakings (PSUs) - especially cash rich ones like Steel Authority of India ltd (SAIl), NMDC and NAlCO - are on its radar for this purpose.
The public shareholding in these entities could be brought to 25 per cent as per Sebi’s recently released norms, as currently Government holds 80 per cent or more in them.
Disinvestment in Maharatna companies and selling off sick PSUs are two main agenda items of the Government, which it has earmarked for the first 100 days, sources privy to the development pointed out.
Official sources told The Pioneer that the BJP Government is likely to retain the Rs 36,900 crore disinvestment target for the current fiscal when it comes up with its maiden Budget next month. This figure had been earmarked by the UPA Government in its interim Budget presented in Parliament on March 17.
With the last three months lost in electioneering, the Government wants to go ahead with the disinvestment process as this will help boost its coffers and according to highly placed official sources, the exercise is to begin on June 23 itself, when the Department of Disinvestment (DoD) has called Steel Ministry officials for a meeting to discuss 5 per cent Government’s stake sale in SAIl.
They added that currently Government holds 80 per cent stake in SAIl, once another 5 per cent of its stake is sold off, it will be able to meet Sebi’s norm of PSUs having 25 per cent public shareholding. Monday’s meeting, sources informed, has been called by DoD to discuss the 5 per cent stake sale possibilities, a process through which the Government aims to garner Rs 1,900 crore at the current rate of the US dollar.
looking at the Government’s urgency, SAIl stake sale could happen within the first 100 days of the NDA regime, sources said.
Apart from SAIl, other PSUs like NMDC and NAlCO could follow soon. At the same time, sources added that the Government is also in the process of making a list of sick PSUs which it can sell off to private entities and earn well required capital. Especially the real estate worth of these entities is what the Government is eyeing, they said.
The Narendra Modi-led BJP Government rode to power at the Centre largely on the promise of expediting economic growth and disinvestment is a significant tool towards achieving this.
Moreover, once the public shareholding in PSUs comes to 25 per cent, it will conform to Sebi’s last week released norms towards this. The market regulator’s board had on June 19 finalised this norm, making it mandatory for PSUs to maintain this public shareholding percentage within three years. Currently the rule is not binding on them though it will become compulsory for them once the Government okays it.