Either the stake in these companies will be sold or they may partner private firms.
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With Oil Ministry continuing to be opposed to selling IOC shares on stock market like other disinvestments, an Empowered Group of Ministers headed by Finance Minister P Chidambaram today decided to sell 24.27 crore shares or 10 per cent government stake in the company to Oil and Natural Gas Corporation and Oil India Ltd.
The idea is to do away with the need for the approval of the Core Group of Secretaries on Divestment for privatisation of companies, especially in non-strategic sectors.
Going by the current market cap of Rs 83,451.15 crore, 7.33 per cent stake in BPCL is expected to be valued around Rs 6,117 crore.
IMF's Chief Economist Gita Gopinath on Thursday said it would be damaging for India to start tightening policy support in the midst of the COVID-19 pandemic and also stressed on reducing wasteful expenditures in the upcoming Budget. Delivering NCAER's '9th C D Deshmukh Lecture' virtually, Gopinath said there is scope for the Indian government to provide more direct support to people.
Under the current regulations, market regulator Sebi allows companies, which want to reduce share capital, to buy back their own equity from shareholders.
With the Petroleum Ministry opposing disinvestment of IOC in the market, government is exploring the option of selling its shares to other oil PSUs like ONGC and OIL.
The government is hopeful that 5 per cent disinvestment in blue-chip oil company ONGC will be completed by December, although it has advised SAIL to put on hold its share sale for the time being.
The government holds 85.96 per cent in NHPC.
RBI Governor would like to wait till Budget before taking any action on rate front.
The government is selling over 41.22 crore shares or 5 per cent stake in NTPC.
The New Year 2015, however, may see shares worth over Rs 50,000 crore (Rs 500 billion) being put on the table by the government, including by way of part-sale of its holdings in PSUs and its residual minority stakes in some private sector entities.
Probable reasons that led to failure of the sale process include 24 per cent government stake and corresponding rights, high debt, volatile crude oil prices, fluctuations in exchange rate, changes in macro environment, profitability track record of bidders and restriction on bidding by individuals.
SAIL is expected to raise around Rs 7,000-8,000-crore (Rs 70-80 billion) going by the prevailing market price of the stock.
This is part of the government's plan to raise Rs 40,000 crore (Rs 400 billion) from disinvestment in the current financial year.
Expects to raise Rs 9,300 crore from Indian Oil share sale on Monday
The broad trends of GST collections will make you wonder if indeed the biggest indirect tax reform in the country has led to a real improvement in revenues, notes A K Bhattacharya.
Divestment in PFC, REC, NHPC, Nalco, Hindustan Copper and NMDC could be considered
'In a serious fiscal situation like this, an ostrich-like focus on annual budgeting, event management and defensive rhetoric will only make matters worse,' warns Rathin Roy.
Government currently holds 67.72 per cent equity in BHEL.
Amid strong opposition from CIL workers union to the proposed stake sale in the company, Finance Minister P Chidambaram has said the disinvestment proceeds of about Rs 20,000 crore (Rs 200 billion) from the coal behemoth will be invested in public sector banks.
Close on the heels of Disinvestment Commission recommending privatisation of National Buildings Construction Corp, Disinvestment Department has asked Ministry of Urban Development for its comments in the matter, by January 31.
The UPA-II may not talk about this, but it continues to implement its programme to revive ailing PSUs by investing fresh capital.
With the disruption caused by the second wave of Covid-19 pandemic, the 'fear of unknown' is looming over the government's privatisation drive. Although there is a lot of uncertainty and unpredictability on how things will unfold, the government is hopeful of completing the transactions listed in the Budget with a delay of one to two months, said a top government official. However, "there are many unknown factors now, and we do not know whether there could be a third wave. But we are trying to carry on with our work", the official said." Since there is a lot of uncertainty, the estimates will have to be revised as rating agencies are revising their outlook for growth.
Privatisation-bound Bharat Petroleum Corporation Ltd (BPCL) on Thursday said it has no intention to sell a part of its stake in Petronet LNG Ltd and Indraprastha Gas Ltd (IGL) to help its new owner avoid making an open offer for the two gas companies. BPCL holds 12.5 per cent of the shareholding in India's largest liquefied natural gas importer, Petronet, and a 22.5 per cent stake in city gas retailer, IGL. It is a promoter of both the listed companies and holds board positions.
In what seemed a political understanding, Trinamool Congress chief and Railway Minister Mamata Banerjee stayed away from a cabinet committee meeting where the government finally cleared two disinvestment proposals she had been opposing.
Arun Jaitley will aim for jumps in other revenue streams for the government.
This is a setback for the divestment process of Air India as no other Indian airline has the capability to fund the process
Despite only Rs 2,000 crore (Rs 20 billion) mopped in the first half through disinvestment, the finance ministry said on Tuesday it is 'confident' of meeting the Rs 40,000-crore (Rs 400-billion) target for the current fiscal, as there is enough appetite in the market.
Sources said valuation of all these assets was an ongoing process, and the mode and manner of disposal would be decided on a case-by-case basis
Earlier, the government had said it was looking at divestment in Indian Oil Corporation, Steel Authority of India Ltd and ONGC in the first quarter of 2011.
Offloading shares in ONGC, CIL, NHPC may fetch govt more than the year's target.
The process of selling stake in other profit-making PSUs is already underway.
Floor price of SAIL to be set at Rs 83 a share.
I guess there is this nagging suspicion that the arithmetic adds up just too nicely. To begin with, tax revenue is expected to grow by 18 per cent on the back of a 14 per cent rise in nominal GDP.
Leader of Opposition Mallikarjun Kharge, speaking on the Motion of Thanks on the President's address, charged the government with not delivering on its various promises, including generating two crore jobs per year.
This was the one Budget that required radical departures on all these fronts, when it had none, asserts, Shreekant Sambrani.
The government should speed up the disinvestment process to generate funds for meeting the new needs such as environment protection, 13th Finance Commission chairman Vijay Kelkar said.
The government on Friday said it is targeting to raise Rs 18,000 crore (Rs 180 bilion) through the 20 per cent share sale in the country's largest steel-maker SAIL.
