BIG BANG DISINVESTMENT! Modi govt Govt clears sale of BPCL, NEEPCO, Tehri Hydro, Shipping Corp and Concor!

Modi govt has approved stakes sale in BPCL, NEEPCO, Tehri Hydro, Shipping Corp and Concor. Central govt was planning to go for aggressive strategic disinvestment of several State-owned companies and also reduce its stakes in many other PSUs to raise funds. Notably, the government has approved the sale of stake in order to offset the revenue loss it undertook in announcing corporate tax cuts.

Sources have confirmed that the panel has approved a strategic sale of its stake in major public sector enterprises, including Bharat Petroleum Corp Ltd, the Container Corp of India and the Shipping Corp of India, North Eastern Electric Power Corporation Limited and Tehri Hydro. The government previously held 63.75 per cent equity in SCI, 54.8 per cent in CONCOR and 53.29 per cent stake in BPCL.

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Now, the panel has approved a 100% stake sale in PSU's like BPCL, NEEPCO, Tehri Hydro, Shipping Corp. While only 30% sale of stakes in Concor. It is important to note that this is the first time when the government has considered a complete exit from profit-making PSUs. While in the budget this year, Finance Minister Nirmala Sitharaman had indicated government's plan to reduce equity in PSUs to below 51 per cent.

The sale of stake in these companies will also help the government to achieve disinvestment target of Rs 1.05 lakh crore in the current financial year. The government is confident of exceeding the disinvestment target in this financial year and if this happens, the government will surpass the disinvestment target for the fourth consecutive year. Disinvestment target of Rs 1.05 lakh crore was set in the budget for the current financial year. While, it was Rs 90,000 crore in the last financial year, which was exceeded. Even before this, the government has been adopting several methods to achieve the disinvestment target.