ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • ZNAA'22
  • Trending News
    • Viral News
    • Travel
    • People
    • Entertainment
    • Sports
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • IPO: 11 public offers raise Rs 33,000 cr between April-June FY23; 17 more in pipeline
  • Rakesh Jhunjhunwala-backed Akasa Air first commercial flight flagged off by Civil Aviation Minister Jyotiraditya Scindia on this
  • IRDAI to rename grievance redressal mechanism; complaints can be filed in regional languages soon
  • Market next week: Global cues, macro numbers, last batch of earnings to dictate D-Street in holiday-truncated week: Experts
  • Eight of top-10 valued firms add Rs 98,235 cr in m-cap; Infosys, TCS lead gainers
Read in App
Business News » India News

Modi Government's BIG TICKET strategic sale of BPCL, CONCOR, SCI, among others

Cabinet Committee on Economic Affairs on Wednesday approved strategic disinvestment in five PSU — BPCL, CONCOR, SCI, THDC and NEEPCO.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Modi Government's BIG TICKET strategic sale of BPCL, CONCOR, SCI, among others
FM Nirmala Sitharaman said that while the Centre will strategically disinvest BPCL, Shipping Corporation of India and Container Corporation of India. Photo: Reuters

Pushing the pedal on its disinvestment programme, the Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved strategic disinvestment in five large public sector undertakings (PSU) — BPCL, CONCOR, SCI, THDC and NEEPCO — along with change in management control in these companies. Addressing the media after the Cabinet meeting, Finance Minister Nirmala Sitharaman said that while the Centre will strategically disinvest Bharat Petroleum Corporation Ltd (BPCL), Shipping Corporation of India (SCI) and Container Corporation of India (CONCOR), it will sell its entire stake in THDC India Ltd and North Eastern Electric Power Corporation (NEEPCO) to another state-run power major, NTPC. The government will also give up management control in these companies, Sitharaman added.

The strategic sale of BPCL, however, would exclude the oil refiner`s 61 per cent stake in Numaligarh Refinery Ltd in Assam, Sitharaman told reports.

See Zee Business Live TV streaming below:

"Numaligarh will be carved out from BPCL before its disinvestment and would retain its PSU character. The company can be taken over by other CPSE in the oil and gas sector under consolidation," she said.

The Cabinet decided on the "strategic disinvestment of BPCL`s shareholding of 61.65 per cent in NRL along with transfer of management control to a Central Public Sector Enterprise (CPSE) operating in the oil and gas sector," an official statement said.

Disinvestment Secretary T.K. Pandey told the media that the disinvestment of BPCL may be be carried out in two phases.

See Zee Business tweet below:

ज़ी बिजनेस की खबर पर लगी मुहर...निजीकरण का सबसे बड़ा फैसला, BPCL सहित 5 कंपनियों में हिस्सेदारी बेचेगी सरकार#ZBizImpact @AnilSinghvi_ @SwatiKJain pic.twitter.com/5ORJedP0Qy

— Zee Business (@ZeeBusiness) November 21, 2019

The government may consider two-phased disinvestment for public sector oil refiner and retailer BPCL if the initial strategic sale of the entire 53.29 per cent government stake in the company fails to get requisite response.

IANS had earlier reported that due to concerns over lack of interest among market players, including global majors, investors may not commit to pump in close to Rs 1 lakh crore required to complete the transaction at one go.

The government has tried this model earlier during the strategic disinvestment of metal and mining PSUs -- Hindustan Zinc Ltd and BALCO. Then Atal Bihari Vajpayee government had retained minority shareholding in these PSUs after the sale and change of management control.

At current share prices, government`s 53.29 per cent stake in BPCL is worth around Rs 60,000 crore. This is likely to help the government meet its higher disinvestment target of Rs 1,05,000 crore for the financial year 2019-2020.

In terms of CONCOR, the government would disinvest 30.8 per cent, out of the 54.8 per cent equity the government currently holds, and will retain the remaining 24 per cent. The management control in CONCOR will still change hands, Pandey said.

Two PSUs under the strategic disinvestment plan, THDC and NEEPCO, will be taken over by another state-run power major NTPC.

Official sources said NTPC may offer close to Rs 10,000 crore for picking up the entire stake held by the Centre in the two companies. Though the transaction advisor will come to valuations about the entities later, the portfolio of projects with NEEPCO and THDC make it a fit case to command good value.

The Centre holds 100 per cent stake in NEEPCO that operates close to 1,500 MW of power plants in the northeastern region, while it has 75 per cent holding in THDC. The Uttar Pradesh government holds the balance 25 per cent stake in THDC India.

In another decision, the Finance Minister said the government would lower stake below 51 per cent in select PSUs while retaining the management control. The decision to bring down Centre`s stake will be taken on a case-to-case basis, she said.

The Disinvestment Secretary said that even with government holding falling below 51 per cent, these companies would continue to retain the PSU character and the move will not require any amendments to laws governing the PSUs.

From the stake sale in SCI and CONCOR, the government is likely to get over Rs 2,000 crore and Rs 10,500 crore, respectively, at current stock prices of the company.

Among other decisions, the CCEA approved certain measures for the effective implementation of initiatives to revive the construction sector.

It also cleared the amendments proposed in the Toll-Operate-Transfer (TOT) model by National Highways Authority of India (NHAI). Public funded National Highway (NH) projects, which are operational and have toll revenue generation history of one year after the Commercial Operations Date (COD), shall be monetised through the TOT Model.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Nirmala SitharamanBPCLNarendra Modiindia
Written By: IANS
Updated: Thu, Nov 21, 2019
08:46 am
New Delhi, IANS
RELATED NEWS
No new levy on items consumed by poor; states taxed such products in pre-GST era: FM Nirmala Sitharaman No new levy on items consumed by poor; states taxed such products in pre-GST era: FM Nirmala Sitharaman
India is facing no risk of recession: Nirmala Sitharaman in Lok Sabha during price rise debate India is facing no risk of recession: Nirmala Sitharaman in Lok Sabha during price rise debate
Crypto use as asset, substitute for currency a challenge, says Union Minister Crypto use as asset, substitute for currency a challenge, says Union Minister
Social Stock Exchange: What it is? How it works? Big questions answered about new financing paradigm Social Stock Exchange: What it is? How it works? Big questions answered about new financing paradigm
RBI in favour of prohibiting cryptocurrencies, says FM Nirmala Sitharaman in Parliament RBI in favour of prohibiting cryptocurrencies, says FM Nirmala Sitharaman in Parliament

LATEST NEWS

Eight of top-10 valued firms add Rs 98,235 cr in m-cap; Infosys, TCS lead gainers

Sister's Day 2022: Date, Significance, WhatsApp message, greetings

Dividend stocks, bonus share, stock split update: These 20 stocks will remain in focus next week | Full List

Natural farming spreads roots in world's highest village in Himachal Pradesh

Rakesh Jhunjhunwala-backed Akasa Air first commercial flight flagged off by Civil Aviation Minister Jyotiraditya Scindia on this route

Market next week: Global cues, macro numbers, last batch of earnings to dictate D-Street in holiday-truncated week: Experts

IPO: 11 public offers raise Rs 33,000 cr between April-June FY23; 17 more in pipeline

Commonwealth Game 2022 Medal Tally: Indian medal winners at Birmingham CWG after day 9 | Full List Here

JEE Mains Session 2 result declared on jee.nta.ac.in; check how to download | Details here

Tejas: Why home-made light combat aircraft are in demand? These countries show interest

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV