The Cabinet has approved a plan to list six government-owned companies and dilute stake in Kudremukh Iron Ore Company Ltd (KIOCL) through a share sale, the government said on Friday.
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi cleared plans to list Telecommunication Consultants Ltd, RailTel Corp India Ltd, National Seed Corp India Ltd, Tehri Hydro Development Corp Ltd, Water & Power Consultancy Services Ltd and FCI Aravali Gypsum and Minerals Ltd.
The government said it would reduce its stake in KIOCL through a follow-up offering.
"The listing of Central Public Sector Enterprises (CPSEs) on the exchange shall unlock their value and encourage investor participation in the CPSEs. Further, Alternative Mechanism comprising of the Finance Minister, Minister of Road Transport & Shipping and the Minster of concerned administrative ministry has been empowered to decide on extent, mode of disinvestment, pricing, time etc. of listed CPSEs (including CPSEs to be listed in future)," the government said in a press release.
The government faces the risk of missing its divestment target for the year, having garnered less than half the Rs 80,000 crore targeted amount.
As against the budgeted disinvestment target of Rs 80,000 crore, the government has so far raised Rs 34,000 crore by selling minority stake in CPSEs and ETFs.
Edited by Aseem Thapliyal