Business & Economics

Cabinet Approves Stake Sale Of 5 Large Public Sector Undertakings

BP World Bureau | Nov 21 2019 11:32:02 AM
Imagecredits:BPcreation

The cabinet committee on economic affairs (CCEA) approved the strategic disinvestment in five large public sector undertakings (PSU) along with management control change in the five companies.

Finance Nirmala Sitharaman that centre will disinvest five companies;  Bharat Petroleum Corporation Ltd (BPCL), Container Corporation of India (CONCOR) Shipping Corporation of India (SCI).

The government will sell the entire stake in THDC India Ltd and North Eastern Electric Power Corporation (NEEPCO) to NTPC, which is another state-run power major.

She added that the government will give up control of these companies. T.K. Pandey, disinvestment secretary said that the disinvestment of BPCL will be carried out in two phases.

Read: Priyanka Gandhi Against Centre’s Decision To Put Golden Birds On Sale

The government's share is 53.29% in BPCL which is worth around Rs 60,000 crore and this will help the government meet disinvestment target of Rs 1,05,000 crore in 2019-2020 financial year.

NTPC may offer close to Rs 10,000 crore for picking up the entire stake held by the Centre in THDC and NEEPCO.

The centre holds 100% stake in NEEPCO which operates 1,500 MW of power plants in the northeastern region and it has held in THDC.

The government is likely to get over Rs 2,000 crore and Rs 10,500 crore for the stake sale of  SCI and CONCOR respectively.

CCEA approved the measures for the implementation of initiatives to revive the construction sector in this financial year.

CCEA cleared proposed amendments in the Toll-Operate-Transfer (TOT) model by National Highways Authority of India (NHAI) which is a public-funded project.

Congress general secretary Priyanka Gandhi had slammed the union government for their decision to sell Bharat Petroleum and Air India, which she regarded as the golden birds of India.