The government on Monday cleared disinvestment in five Public Sector Undertakings (PSUs). This is likely to bring in around Rs 60,000 crore which accounts for nearly 60 per cent of Rs 1.05 lakh crore budgeted from the strategic stake sales in PSUs this financial year. The move will also help the government keep its fiscal deficit in check.
Proceeds from disinvestment in five PSUs namely, Bharat Petroleum Corporation (BPCL), Shipping Corporation of India (SCI), Concor, North Eastern Electric Power Corporation (NEEPCO), and THDC would aid the Centre contain its fiscal deficit amid low tax revenues and a Rs 1.45 lakh crore burden on the exchequer on account of corporate tax cut.
While the Centre wants to offload its entire stake in four PSUs, it wants to sell 30% of its 54.80% share in Concor. The stake sale in this PSU will fetch the Centre Rs 6,056 crore (at Monday's market price of Rs 604.60).
Furthermore, for BPCL, the government has two choices- either to sell the PSU to a private player or to Indian Oil Corporation. The report said that the structure will be decided upon at the time of preparing the note.
At current market price, BPCL will bring in Rs 54,342 crore for the government, fetching it the most of the revenues. But, disinvestment in the PSU would necessitate a law change since BPCL came into being after Burmah Shell was nationalised in the year 1876 under the Companies Act.
The government intends to sell NEEPCO and THDC to NTPC, the report added. The 63.75 per cent stake that the government holds in SCI will fetch it Rs 1,282.7 crore.
The government has got Rs 12,357.49 crore from the disinvestment proceeds so far.