Spreading wealth among people
The Cabinet Committee on Economic Affairs has accorded ‘in-principle’ approval for enabling reduction of Government’s paid-up share capital below 51% in select Central Public Sector Enterprises (CPSEs) while retaining the management control on case to case basis, taking into account the Government shareholding, and the shareholding of Government-controlled institution.
This is intended to widen the bandwidth of disinvestment window in select CPSEs, said the Committee on 20 Nov 2019.
This will also help in pursuing the objectives of disinvestment i.e. spreading the wealth of the nation among a greater number of people, promoting efficient management of Government investment in CPSEs and ensuring greater transparency and increasing contribution of the CPSEs towards higher economic growth of the nation.
It would also increase the free float available in the market which may have positive impact on Foreign Portfolio Investments in Indian capital markets and in creation of wider investment space for retail and institutional investors and may increase in the market premium of CPSEs due to likely positive investors perception.
Meanwhile, Finance Minister Nirmala Sitharaman told a press conference that the Cabinet has approved the sale of stake of the government in five prominent Public Sector Units (PSUs), including Bharat Petroleum Corporation Ltd (BPCL), Shipping Corporation of India (SCI), and Container Corp of India.
Giving details, Sitharaman said that the Centre has decided to sell its 53.29% stake in BPCL but the control of Numaligarh refinery in Assam will remain with the government.
Sitharaman added that the Numaligarh Refinery will be taken over by another public sector company in future.
The Centre also decided to sell its stake in THDC India and North Eastern Electric Power Corporation Ltd (NEEPCO) to Government-owned NTPC Ltd, and the government’s stake in select PSUs will be brought below 51% while retaining management control.
The Cabinet also decided to sell 67% in Shipping Corporation of India and transfer the management control to private players.
The government also decided to disinvest 30.8% of its stake along with transfer of management control to strategic buyer in CONCOR.
Other key decisions taken by the Cabinet:
– Telecom companies will have to pay applicable interest on deferred spectrum payments;
– Deferred Spectrum payment to be equally spread over the remaining installments without any increase in existing time period;
– In view of financial stress faced by telecom firms, the Cabinet has approved deferring receipt of spectrum auction instalments for two years;
– Cabinet has approved monetising of National Highway Authority of India projects that are operational and collecting toll for at least one year since construction through the TOT model;
– NHAI gets Cabinet’s nod to vary concession period to 15 to 30 years from 30 years.
– The Union Cabinet also approved the bill to grant ownership rights to people living in Delhi’s unauthorised colonies. fiinews.com