There is money to buy the central public sector enterprises, but buyers will need a firm assurance that the disvestment programme will keep environment issues front and centre of their corporate plans.
Kailash Gahlot, a key minister in the Aam Aadmi Party (AAP) government in Delhi, has resigned, potentially impacting the party's ambitious plan to roll out a Rs 1000 monthly honorarium scheme for women ahead of the Assembly polls in February. Gahlot, who represented the Jat-dominated Najafgarh constituency in West Delhi, cited several issues, including the "Sheeshmahal" controversy over his former official residence, the Delhi government's tussle with the Centre, and the failure to clean the Yamuna River, in his resignation letter. Delhi BJP leaders welcomed Gahlot's resignation, fueling speculation that he could join the party before the assembly polls. However, AAP leaders claimed Gahlot resigned due to pressure from central agencies, including the Enforcement Directorate, and that joining the BJP was his last option. Gahlot's resignation has sparked speculation about his future and the impact it will have on the AAP's electoral prospects.
Some overseas investors refuse to be part of roadshows, citing environment risks
The company has withdrawn the draft red herring prospectus (DHRP) for a follow-on public offering (FPO) filed with the Securities and Exchange Board of India in September for the disinvestment of the government's five per cent stake in the company.
The finance minister continues to be backed by the same policy team in charting out the broad strategy as in the few earlier Budgets.
The government had proposed to raise Rs 30,000 crore from divestment in the current fiscal.
With recent issues from state-run companies receiving lukewarm response from the markets, the government has downscaled its divestment programme this year, restricting it to a maximum of eight companies.
Steel Minister Ram Vilas Paswan on Thursday ruled out any divestment in the companies under the ministry and said the department had not received any letter from the finance ministry over the issue.
The government on Thursday permitted 100 per cent foreign investment under the automatic route in oil and gas PSUs which have received in-principle approval for strategic divestment. The move would facilitate privatisation of India's second biggest oil refiner Bharat Petroleum Corp Ltd (BPCL). The government is privatising BPCL and selling its entire 52.98 per cent stake in the company.
This is the second highest divestment proceeds in a financial year.
Cabinet set to approve broadened framework this week; market route to be pursued as well.
The government is keen to divest stake in PSU firms .
In the wake of renewed threats from the unions to stall the proposed public offering of shares, the government is reworking its strategy to go ahead with the divestment of National Aluminium Company.\n\n\n\n
'The Budget needs to focus more on social welfare schemes.'
Investor confidence has evaporated amid fears over the rising cost of funding India's gaping current account deficit, prompting New Delhi to delay plans to raise much-needed funds through partial privatisations, finance ministry sources said.
S S Meenakshisundram on Wednesday took charge as secretary in the ministry of divestment.\n\n
The divestment target remaining unchanged, from the 2019-20 interim Budget, this year means the Centre will now have to depend on non-tax revenue sources like dividends from the RBI, PSBs and PSUs, as there are real concerns of a tax revenue shortfall. The fiscal deficit target of 3.4% of GDP for 2019-20 is likely to be retained as well.
Earlier this year, the government raised around Rs 1,000-crore by selling its stake in Satluj Jal Vidyut Nigam.
Government is expected to rely more on divestment proceeds to keep the fiscal deficit in check
Kailash Gahlot was divested of the Law and Justice portfolio in the Aam Aadmi Party government on Friday, a day after Lieutenant Governor V K Saxena recalled files related to judicial infrastructure and administration in New Delhi as they remained pending with him for months, officials said.
The portfolios were cleared by Congress president Rahul Gandhi as the exercise had turned out to be tricky for the party state leaders.
The divestment of Bharat Petroleum Corporation (BPCL) may hit a fuel price hurdle, according to officials dealing with the matter. They pointed out that the inconspicuous administered price regime could hamper the prospects for potential buyers of BPCL. A senior oil ministry official said public-sector oil-marketing companies (OMCs) take a hit when they sell petrol, diesel, and liquefied petroleum gas (LPG), three of the most popular petroleum products in the country.
SAIL on Friday said the finance ministry has given its in-principle approval for 20 per cent disinvestment of the steel giant.
BJP leader Anil Vij on Tuesday skipped Haryana Chief Minister Nayab Singh Saini's swearing-in ceremony where, according to the outgoing CM M L Khattar, he would also have been inducted in the cabinet.
The IPL uses this system for players' auction.
The finance ministry is in favour of extending the August deadline for public sector banks (PSBs) as well as insurance companies to increase their minimum public shareholding (MPS) to the mandated 25 per cent, said a senior government official. "The election results will determine the course of action. "Most likely, those who did not receive an extension to meet the minimum shareholding norm will be granted one," the senior government official said.
The government will hold veto power on all crucial decisions in the privatised Hindustan Petroleum Corporation Ltd through the 'golden share' clause in the share-holders agreement.
In a major bureaucratic reshuffle, the government on Monday appointed Dhirender Singh as the new divestment secretary and K K Jaiswal as the new IT secretary.
The government cleared the proposal despite opposition from the petroleum ministry, which says this is not the right time for divestment as the sector is moving from trade parity to export parity pricing.
Coal ministry officials along with senior officials from Coal India and department of disinvestment would meet with capital market regulator Securities and Exchange Board of India this month to take forward the process of listing the public sector unit.
The previous highest divestment proceeds for the first half of a year was around Rs 21,000 crore in 2016-17.
Out of nearly 30 public sector undertakings and assets under 'strategic sale' plan, only the ONGC-HPCL plan has been completed
The company has already received the coal ministry's nod to reduce the face value of its shares to Rs 10 from Rs 1,000 at present.
Going by the experience of the previous years -- when the actual proceeds from stake sale were much lower than the targets -- the government's disinvestment target for 2014-15 appears too ambitious.
Kharge will take care of IT & BT along with existing portfolio, while Large & Medium Industries Minister M B Patil has been given the additional charge of Infrastructure Development.
The government is understood to have rejected J P Morgan Securities India's plea to waive the condition of mandatory divestment of 25 per cent equity.
