Exclusive: Government forms inter-ministerial group for RVNL stake sale

The government has formed an inter-ministerial group or IMG under the chairmanship of secretary of DIPAM (Department of Investment and Public Asset Management) for the stake sale in public sector undertaking Rail Vikas Nigam Ltd (RVNL). The IMG meet will be held in next 10-15 days, according to sources. It plans to divest up to 75% stake in the company over a period of two years. The first phase of divestment of equity will take place in Oct-Dec quarter, the sources said.

The other members of the IMG are member engineering, railway board; financial commissioner, railway board; financial adviser, DIPAM; Executive Director of PSU under ministry of railways. Besides these, officials of legal affairs department, public enterprises department, economic affairs department and corporate affairs department are also the part of this IMG.

Special invitee to this IMG will be CMD of RVNL and Director (Finance) of RVNL.

Last year, the government had launched the initial public offering of RVNL. It had got stellar response which fetched around 4.76 billion rupees by selling 12.12% stake. The disinvestment target of the government for the current fiscal is Rs 2.1 trillion. So far, the government has not been able to complete any of its disinvestment plans due to covid pandemic outbreak.

RVNL, which comes under the Ministry of Railways is engaged in engineering tasks required by Railways. Its mandate is to raise extra-budgetary resources and execution of projects relating to creation and augmentation of capacity of rail infrastructure speedily.