23 PSUs up for strategic disinvestment
The Narendra Modi government has decided to go for strategic disinvestment of 23 Public Sector Undertakings (PSUs). The budget estimate for the move in 2019-20 has been set at Rs 1,05,000 crore.
The Finance Ministry informed Parliament on July 22 that in 2018-19, the proceeds from disinvestment were Rs 84,972 crore.
Among the units that will go down the hammer include: Project & Development India Ltd, Hindustan Prefab Limited (HPL), Engineering Project (India) Ltd, Bridge and Roof Co. India Ltd., Pawan Hans Ltd., Hindustan Newsprint Ltd (subsidiary), Scooters India Limited, Bharat Pumps & Compressors Ltd, Hindustan Fluorocarbon Ltd. (HFL) (sub.),Central Electronics Ltd, Bharat Earth Movers Ltd. (BEML),Ferro Scrap Nigam Ltd.(sub.), Cement Corporation of India Ltd (CCI), Nagamar Steel Plant of NMDC and Alloy Steel Plant, Durgapur of SAIL.
"Strategic disinvestment has been guided by the basic economic principle that the government should not be in the business to engage itself in manufacturing/producing goods and services in sectors where competitive markets have come of age, and economic potential of such entities may be better discovered in the hands of the strategic investors due to various factors, e.g. infusion of capital, technology up-gradation and efficient management practices," said the Finance Ministry adding the government would also be able to monetize its investment in CPSEs.
In disposing off five entities -- HPCL, REC, NPCC, HSCC and DCIL -- in last two years, the government did not make profitability a criteria.
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