Even after facing the two-day nation-wide workers’ protest against disinvestment among other issues, the Finance Ministry announced on Friday that it was going ahead with selling part of its equity in four public sector undertakings in the current fiscal.
Although, the Government initially targeted Rs 30,000 crore through disinvestment proceeds, it later admitted that it might not get more than Rs 27,000 crore.
The Government has so far managed to get over Rs 21,000 crore through selling part of its stake in five PSUs. Now, with just 37 days left for the fiscal year to end, it has come out with a final list.
In a written answer, the Minister of State for Finance S.S. Palanimanickam informed the Lok Sabha on Friday that transactions related with stake-sale in
All these four PSUs are planned to be divested through ‘offer-for-sale through stock exchanges’ also known as the ‘Auction Method.’
Trade unions demand
“Central trade unions have demanded stoppage of disinvestment as a matter of their policy. However, disinvestment of minority stake is carried out according to the policy of the Government,” Palanimanickam said. The interests of the employees will not be affected as only a minority stake is being disinvested.
Proceeds from the sell-off (in the current year) would be used for funding capital expenditure in the social sector schemes identified by the Finance Ministry and the Planning Commission, he added. In the current fiscal, the Government has so far approved disinvestment in 11 companies, while proceeds from one company (National Buildings Construction Corporation Ltd) has been accounted for this year.
Of the 11, disinvestment has already been carried in four companies till date, while three approved cases of Rashtriya Ispat, Hindustan Aeronautical and Engineers India are planned for the next year. Final approval for heavy industries major BHEL is still awaited.
Meanwhile, there is still no clarity on the initial public offering of Rashtriya Ispat Nigam Ltd. It was proposed to be divested as the first company during the current fiscal, but was deferred thrice, the last time on October 9.