60 public sector cos are in the Centre's radar for off loading 10% stake.THE disinvestment Disinvestment 1. The action of an organization or government selling or liquidating an asset or subsidiary. Also known as "divestiture". 2. A reduction in capital expenditure, or the decision of a company not to replenish depleted capital goods. Notes: 1. department has drawn up a list of 60 public sector companies, including SAIL, Bharat Sanchar Nigam Ltd (BSNL BSNL Bharat Sanchar Nigam Limited BSNL Biosecurity and Nanoscience Laboratory ) and Coal India in which the government plans to sell up to 10 per cent of its stake to the public through the stock market. Disinvestment secretary Sunil Mitra said, "We are in interactions with the ministry of steel for SAIL and with the coal ministry on Coal India. On BSNL also, we are in interaction with the IT and communications ministry." Mitra disclosed that there are 10 listed public sector undertakings (PSUs) where the public holding is less than 10 per cent and around 50 government-owned firms which are profitable but still have not been listed. He said it was not possible to draw up an exact time schedule for the disinvestment process at this point. A lot of factors have to be taken into consideration before the process is set in motion, he added. "We are in interaction on a large number of these 60 companies with their administrative ministries. We are in interaction with them but it does not mean that we are close to divesting them...All this is a function of a number of factors," he explained. Mitra said the government expects to raise about Rs 8,100 crore n. 1. Ten millions; as, a crore of rupees (which is nearly $5,000,000) s>. Noun 1. crore - the number that is represented as a one followed by 7 zeros; ten million from the five per cent stake sale in power major National Thermal Power Corp (NTPC NTPC National Thermal Power Corporation (India) NTPC Northwest Territories Power Corporation NTPC Northwest Territories Power Corporation (Canada) NTPC Navy Training Plan Conference ) through a follow-on public offer (FPO (For Position Only) A low-resolution image used to mark the placement of the final image. During the draft stages of a publication, FPOs are often used instead of the high-resolution images, which take up a significant amount of storage. ). "We anticipate more than three times what we got at the last IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. (initial public offering)," Mitra said. The government had managed to rake in Rs 2,700 crore in the NTPC IPO floated in 2004 when it had sold 5.24 per cent of its stake in the company. After stake dilution, the government's holding in NTPC would come down to 84.5 per cent from 89.5 per cent at present. Asked whether the opposition by Trinamool Congress chief Mamata Banerjee and the Karunanidhi-led DMK would put the disinvestment of public sector companies located in West Bengal and Tamil Nadu on the back burner, Mitra replied, " There is no such guidance from the government." Opposition from the two leaders in the run up to the Assembly elections had forced the government to postpone its disinvestment plans. The government had earlier this month announced its big bang disinvestment programme with the Cabinet committee on economic affairs ( CCEA) gave the green signal to sell a 10 per cent stake in all profit- making and listed public sector companies in the stock market. According to the decision, all unlisted public sector companies making profits will also be listed on the stock exchanges. This will pave the way for offloading a 10 per cent share in these companies as well. The Centre has also changed the rule for spending the stake sale proceeds in order to have quicker access to these funds for social sector schemes and bring down the fiscal deficit which has jumped to 6.8 per cent of gross domestic product ( GDP GDP (guanosine diphosphate): see guanine. ). The entire proceeds of the disinvestment will be used directly for expenditure on social security programmes and not be routed through the National Investment Fund as has been the case until now. Finance minister Pranab Mukherjee has also indicated that the government would not rush into the disinvestment but offload the shares to get the " maximum benefit". He has stated that experts will be appointed to carry out the due diligence exercise and the market's capacity to absorb the shares will be kept in mind. We are in interactions with the ministry of steel for SAIL & coal ministry for Coal India. On BSNL also, we are in talks with the IT & communications ministry -- Sunil Mitra, Secretary, Disinvestment SELLING GOVT PIE The govt's divestment chart has 10 PSUs with less than 10% public holding and about 50 govt-owned profitable firms which are unlisted on bourses All unlisted PSU cos making profits will also be listed on the bourses It'll pave way for offloading a 10% in these cos as well The proceeds will not be routed via National Investment Fund Copyright 2009 India Today Group. All Rights Reserved. Provided by Syndigate.info an Albawaba.com company |
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