Finance Ministry transforming strategic sale process to make sure outright sale of central public sector enterprises


New Delhi: The finance ministry is transforming strategic sale process to make sure outright sale of Central Public Sector Enterprises (CPSEs) inside four months of issuance of paperwork to potential buyers, a transfer geared toward guaranteeing speedier conclusion of the complete course of, an official stated.

However, for CPSEs like Air India, that are comparatively larger in measurement, the timeline for completion of strategic sale is prone to be mounted at 6 months from the date of issuance of Preliminary Information Memorandum (PIM) in regards to the firm.

Currently, there isn’t a set timeline for concluding strategic sale of a state-owned firm and the complete course of, in some instances, drags on for months, if not years.

“The strategic sale policy is already in place, but the procedure needs to be streamlined so that the sale process is completed within 3-4 months’ time. The thinking is that if a process cannot be completed in 4 months then it should be abandoned,” an official informed PTI.

Facing a frightening process of assembly the Rs 90,000-crore disinvestment goal within the present fiscal, the Department of Investment and Public Asset Management (DIPAM) will give attention to outright sale of chosen CPSEs, which have been pending for lengthy. NITI Aayog has already recognized 35 worthwhile and loss-making CPSEs which may go in for strategic sale.

“The procedure would be drafted in a way such that the process can go on simultaneously for more than one CPSE. For bigger CPSEs, the timeline for completion of sale could be extended till about 6 months,” the official added. The corporations which have been shortlisted for strategic sale embrace Air India, Air India subsidiary AIATSL, BEML, Scooters India, Bharat Pumps Compressors, and Bhadrawati, Salem and Durgapur models of metal main SAIL.

The different CPSEs for which approvals are in place for outright sale embrace Hindustan Fluorocarbon, Hindustan Newsprint, HLL Life Care, Central Electronics, Bridge & Roof India, Nagarnar Steel plant of NMDC and models of Cement Corporation of India and ITDC.

Representational picture. Reuters.

The course of for strategic sale of many state-owned corporations began again in late 2017 or early 2018 however the transactions couldn’t be concluded.

The DIPAM had issued PIMs on the market of Pawan Hans, Bharat Pumps & Compressors Ltd, Hindustan Fluorocarbons Ltd in April 2018, whereas the identical for Scooters India, Hindustan Newsprint was floated in March 2018. The identical of SAIL’s Alloy Steel Plant was issued in February, whereas that of Hindustan Prefab was posted on web site in October 2017. However, these transactions couldn’t be accomplished thus far as a consequence of number of causes.

In final fiscal the federal government had raised Rs 84,972 crore from CPSE disinvestment, of which Rs 15,914 crore got here in from strategic stake sale.

During the fiscal, state-owned NBCC purchased authorities stake in HSCC for Rs 285 crore. Besides, a consortium of 4 ports acquired the federal government’s 73.44 per cent stake in Dredging Corp of India for Rs 1,049 crore, whereas National Projects Construction Corporation (NPCC) was offered for Rs 80 crore.

An quantity of Rs 14,500 crore was raised by means of state-run state-run Power Finance Corp buying the federal government stake in REC.

So far in present monetary 12 months, the federal government has mopped up Rs 2,350 by disinvestment transactions.

<!– Firstpost is now on WhatsApp. For the most recent evaluation, commentary and information updates, join our WhatsApp providers. Just go to Firstpost.com/Whatsapp and hit the Subscribe button.

–>
Your information to the most recent election information, evaluation, commentary, dwell updates and schedule for Lok Sabha Elections 2019 on firstpost.com/elections. Follow us on Twitter and Instagram or like our Facebook web page for updates from all 543 constituencies for the upcoming basic elections.

https://platform.twitter.com/widgets.jshttps://platform.instagram.com/en_US/embeds.js



Source link

Facebook Comments
Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time