Centre completes strategic sales in 7 PSUs

To complete the disinvestment in another 6 companies and the remaining hotels of HCI and ITDC this year

Union Finance Minister Yashwant Sinha told Parliament today that with the streamlined procedure for disinvestment and privatisation, the government has now completed strategic sales in 7 public sector undertakings (PSUs) and some hotel properties of the Hotel Corporation of India (HCI) and the India Tourism Development Corporation (ITDC).

The change in approach from the disinvestments of small lots of shares to strategic sales of blocks of shares to strategic investors has improved the price earning ratios obtained, Sinha said.

The government expects to complete the disinvestment in another 6 companies and the remaining hotels in HCI and ITDC this year, Sinha revealed.

Disinvestment receipts for the present year are estimated at Rs 5,000 crore excluding the special dividend from VSNL of Rs 1,887 crore.

Encouraged by these results, Sinha said he is once again taking credit for a receipt of Rs 12,000 crore from disinvestment next year.

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