Modi government gives Mega order, clears disinvestment of 5 top PSUs; WATCH Anil Singhvi's Editor's take

Modi government has cleared the desks to sell stakes in as many as five big Public Sector Undertakings (PSUs). The cabinet has approved this strategic disinvestment after a high level meeting held on Wednesday night.

The government has also approved reducing its stake in Indian Oil Corporation (IOC) from 51 per cent. However, the management control for IOC will remain with the government only.

Modi government has cleared the desks to sell stakes in as many as five big Public Sector Undertakings (PSUs). The cabinet has approved this strategic disinvestment after a high level meeting held on Wednesday night. The government will sell stakes in five such PSU's including Bharat Petroleum and Corporation Limited (BPCL). According to Finance Minister Nirmala Sitharaman, disinvestment in PSU's include companies like Container Corporation (ConCor), Tihri Hydro Development Corporation Limited (THDCIL), North Eastern Electric Power Corporation Limited (NEEPCO) and Shiping Corporation of India (SCI). The cabinet has also approved stake sale in few CPSEs and bringing it down from 51%, though the management control over these CPSEs are completely under government.

According to Finance Minister Nirmala Sitharaman, the government will be doing a strategic disinvestment in BPCL, but the government will not sell a part of BPCL owned by Numaligadha Refinery (NRL) in Assam. FM said, 61.65 percent stake of BPCL owned by Numaligarh Refinery Limited will not be sold and the government will continue to hold it. However, BPCL will have a full management control transfer.

Watch video! Zee Business, Managing Editor, Anil Singhvi's view on Modi government move below:

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ज़ी बिज़नेस की खबर पर लगी मुहर...BPCL, SCI और कॉनकॉर में सरकारी बेचेगी हिस्सा, सरकार का निजीकरण की दिशा में बड़ा कदम। अनिल सिंघवी से जानिए सरकारी कंपनियों के लिए कौन से हैं अगले 3 बड़े ट्रिगर#EditorsTake #BPCL #Disinvestment @AnilSinghvi_ pic.twitter.com/Eqav3qLI2K

— Zee Business (@ZeeBusiness) November 21, 2019

Disinvestment in IOC

The government has also approved reducing its stake in Indian Oil Corporation (IOC) from 51 per cent. However, the management control for IOC will remain with the government only. The government currently holds 51.5 percent stake in the IOC, while the 25.9 per cent stakes are with LIC and Oil and Natural Gas Corporation (ONGC). Therefore the government can sell 26.4 per cent stakes in IOC for about Rs 33,000 crore.

Modi government step: other highlights

- Cabinet has approved disinvestment in 7 CPSEs.
- Approval to sell 63.75% stakes in SCI, 30.8% in ConCor.
- The management control of SCI will be given to the buyer.
- 100% stakes of North Eastern Electric Power Corporation Limited (NEEPCO) will be given to NTPC.
- Tihri Hydro Development Corporation Limited (THDCIL) will also be given to NTPC.

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Indian Oil Corporation Bharat Petroleum Corporation Limited