20 Govt PSUs Will Be Sold To Private Firms; 6 PSUs Will Shut Down (Full List)
The Minister of State for Finance, Anurag Singh Thakur said that over 20 central public sector enterprises(CPSE) and their units are at various stages of strategic disinvestment and six are even being considered for closure or are under litigation.
On Monday, Singh said the government follows a policy of disinvestment through a strategic stake sale and minority stake dilution while answering a question in the Lok Sabha.
What About The Employees?
Under strategic disinvestment, the government considers the substantial sale of government shareholding of CPSEs, which are not in the priority sector, along with transfer of management control.
Singh said, “Based on the criteria laid down by NITI Aayog, the government has ‘in principle’ approved strategic disinvestment in 34 cases since 2016, out of which strategic disinvestment in 8 cases has been completed, six CPSEs are under consideration for closure and litigation, and remaining 20 transactions are at various stages,”.
Further, to safeguard employees’ interest, Singh said “While deciding the terms and conditions of the strategic sale, employees’ concerns are suitably addressed through appropriate provisions made in the Share Purchase Agreement (SPA) to be signed by the government with the strategic buyer,”.
Which CPSEs Are On The Verge Of Closure?
If we talk about the closure, Hindustan Fluorocarbon Ltd (HFL), Scooters India, Bharat Pumps & Compressors Ltd, Hindustan Prefab, Hindustan Newsprint, and Karnataka Antibiotics & Pharmaceuticals Ltd are the CPSEs which are being considered for the closure/ under litigation.
Which CPSEs Are Considered For Sale?
On the other hand, Engineering Project (India) Ltd, Project & Development India Ltd, Bridge and Roof Co India Ltd, Units of Cement Corporation of India Ltd (CCI), Central Electronics Ltd, Bharat Earth Movers Ltd (BEML), Ferro Scrap Nigam Ltd, Nagarnar Steel Plant of NMDC are the transactions which are still in process pipeline.
Apart from these, the strategic sale of Alloy Steel Plant which includes Durgapur; Salem Steel Plant; Bhadrawati units of SAIL, Pawan Hans, Air India and its five subsidiaries and one JV (joint venture) are also under process.
The other firms which are being considered for strategic sales include organizations like HLL Life Care Ltd, Indian Medicine & Pharmaceuticals Corporation Ltd, various units of Indian Tourism Development Corporation (ITDC), Hindustan Antibiotics, Bengal Chemicals and Pharmaceuticals, Bharat Petroleum Corporation Ltd (except Numaligarh Refinery Limited), BPCL stake in Numaligarh Refinery Limited to a CPSE strategic buyer, Shipping Corporation of India, Container Corporation of India and Neelachal Ispat Nigam Ltd.
CPSEs Completed Sale
While for some CPSEs strategic sale has already been completed that includes names like REC, HPCL, Hospital Services Consultancy, National Project Construction Corporation, Dredging Corporation, THDC India Ltd, North Eastern Electric Power Corporation Limited (NEEPCO) and Kamarajar Port.