The Department of Investment and Public Asset Management (DIPAM) is said to be looking for a registrar to manage a proposed 25 percent disinvestment in Rail Vikas Nigam Ltd (RVNL). September 21 is the deadline for submission of applications. Officials said the Centre was keen on offloading stakes in at least RVNL and RITES this fiscal.
DIPAM officials said proposals are also on the table for offloading equities in the other Railway subsidiaries that have been approved for disinvestment, including IRCON International Ltd, Indian Railway Finance Corp. Ltd, Indian Railway Catering and Tourism Corp. Ltd (IRCTC), and RITES Ltd.
The Centre owns 100 percent stake in all five rail PSUs.
Officials added that the success of RVNL equity sale may trigger the same process for all the five rail PSUs. This will not only ensure better revenues but also help improve the functioning of the firms and get them more resources.
Following a Budget announcement, the Cabinet Committee on Economic Affairs had in April approved the listing of the five PSUs through a public offer of shares up to 25 percent although the “actual disinvestment of each CPSE along with the mode of raising resources has been delegated for decision on a case-to-case basis to the Alternative Mechanism”.