Tuesday, October 22, 2019
News

Strategic sale of BEML, NMDC unit accelerated (IANS EXCLUSIVE)

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

New Delhi | Thursday, 2019 1:45:05 AM IST
With a poor show so far on disinvestment, the government has identified a clutch of PSUs that would go on the block in the coming months even as it faces major challenges in the wake of FPI outflow and depressed investor sentiment.

The Prime Minister's Office (PMO) has directed concerned ministries to clear pending issues in a time-bound manner to carry out stake sale.

Going ahead with strategic sale of BEML, the PMO has directed the Department of Defence Production (DoDP) to firm up expression of interest (EoI)/preliminary information memorandum (PIM) for offloading 26 per cent in the company. The empowered committee (EC) will then finalise the sale documents.

"The EC is expected to finalise the EoI/PIM by the end of September," an official said.

The Cabinet Committee on Economic Affairs (CCEA) had in October 2016 cleared the plan to disinvest 26 per cent in BEML along with management control. The government currently holds 54.03 per cent in the defence major.

As part of the disinvestment plan, the Department of Investment and Public Asset Management (DIPAM) had held a meeting in July this year on asset monetization of BEML.

The other key company headed for strategic disinvestment is Nagarnar steel plant of NMDC which had also been cleared by the CCEA. A Cabinet note on the proposal has received comments from various ministries.

"The PMO has asked Steel Ministry to expeditiously respond to CCEA note and allocation of dedicated mine for the steel unit," the official said.

In order to get best value from the sale of Nagarnar steel unit, the government had decided to allocate a dedicated mine to the steel plant. The Core Group of Secretaries on Disinvestment (CGD) had earlier agreed "in-principle" for demerger of the NMDC.

The transaction of Nagarnar unit had been deferred in February, 2018 and the CGD decided to go for strategic sale after the steel plant was operationalised.

There are a few other companies such as Ferro Scrap Nigam Ltd (FSNL) which would go to a strategic buyer in coming months.

The government is set to flood the market with equity sale of PSUs as just six months are left in the current fiscal to meet the disinvestment target. As against a target of Rs 1,05,000 crore in the FY20, the government has so far managed to raise Rs 12,357 crore.

--IANS nk/kr

( 405 Words)

2019-09-18-19:48:06 (IANS)

 
  LATEST COMMENTS ()
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
INDIA WORLD ASIA
SC acquits man of rape charges as victim...
292 cops including 67 from CRPF martyred...
No money to pay September salaries, TSRT...
Odisha approves Rs 3,208 cr to make Puri...
Massive turnout in Meghalaya by-election...
MoS Home Nityanand Rai condemns Akhilesh...
More...    
 
 Top Stories
UN Security Council delegation visi... 
Ayushmann Khurrana joins fight agai... 
Rajasthan: 15-year-old knocks CM Ge... 
British Speaker blocks new vote on ... 
Parth Samthaan back with another mu... 
Guru Randhawa recreates his own tra... 
Ayushmann Khurrana invests in men's... 
Crimes up 3% in 2017, kidnapping on...