The Department of Investment and Public Asset Management (DIPAM) has initiated the process of diluting government stake in public sector undertakings (PSUs), according to a report in The Times of India.
This is in line with the central government's Budget announcement to disinvest Rs 1.05 lakh crore in the current fiscal year. Around 12 companies have been identified in the preliminary list where the government holding is between 50-60 percent.
DIPAM will float a discussion paper to discuss crucial issues like reservation policy on these PSUs to avoid any controversies later, added the report.
Consultations with various ministries will follow for case-by-case dilution of these state-run companies below 51 percent. The level of dilution and the process of disinvestment for each company is yet to be finalised.
Finance Minister Nirmala Sitharaman had proposed lowering government stake to "an appropriate level" on a case-to-case basis in her maiden Budget.
Sources told the daily that potential companies include Indian Oil Corporation, NTPC, Power Grid, Oil India, GAIL, NALCO, Bharat Petroleum Corporation Limited (BPCL) and Engineers India Limited.
A Cabinet note will be floated after discussions to clarify the disinvestment process. Finance Ministry was also to rework calculation of 51 percent stake to include government-controlled institutions in the stake. How that stake will be calculated will also be clarified after the discussions.
The government plans to close two-three such dilutions by March as per the report.
Additionally, there have been hints that Life Insurance Corporation of India (LIC) will go for an initial public offering (IPO).
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
