Government may sell 10 more PSUs to private firms
As per news source, Government of India may consider 10 new public sector undertakings (PSUs) for divestment either through privatization or Offer-for-sale (OFS) route.
The divestment panel led by Rajiv Gauba met on May 20 to review the divestment pipeline. During this meet, as many as seven PSUs are likely to have been discussed including Neyveli Lignite, KIOCL, SJVN, HUDCO, MMTC, General Insurance of India, New India Assurance.
The divestment can either be done through privatisation or OFS route.
more PSUs which includes Indian Railway Finance Corp, Rail Vikas Nigam, Mazagon Dock Shipbuilders will hit the market again under the Minimum Public Shareholding norms.
The offer for the sale of the three PSUs will be available between FY22-24.
Since, as many as 19 PSUs are yet to comply with minimum public shareholding norms of SEBI. Under this norm, the listed companies need to comply with at least 25% public shareholding as per SEBI norms.
Governments PSE Policy
Prior to this, on February 4, 2021, the New PSE Policy was notified by the government. This policy classified strategic and non-strategic sectors for PSUs under the New PSE Policy.
According to this, the government will retain control in bare minimum PSUs and privatise/merge or close remaining enterprises in strategic sectors.
While, it will consider PSUs for privatisation or closure under the non-strategic sectors.
This year, Finance Minister Nirmala Sitharaman announced a divestment target of Rs 1.75 lakh crore for FY’22 in the Union Budget.
This seems like an ambitious target as in FY21, the FM’s budgeted target of raising Rs 2.1 lakh crore, which was missed as the pandemic put paid to the government’s plans.
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