Two year plan in budget for divesting PSU shares


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Union Finance Minister Arun Jaitley may unveil in his budget speech a two-year road map for three types of sales of government stake in PSUs.
Indianmanadarins has learnt the budget may incorporate a plan for winding up loss-making units, including rules for the disposal of their assets and land. The passage of the new bankruptcy code by Parliament during the budget session is expected to facilitate these sales. Secondly, profitable PSUs will be listed on stock exchanges through public sales of shares. The government’s shareholding in enterprises already listed will be pared down through public offers to the minimum level depending on the sector and “in line with government policy.” The third category will be that of strategic sales of high-value and big-size companies such as BHEL, and the oil and defence sector PSUs. The government may invite global companies to bid for its stakes in such companies with the aim of inducting cutting edge technology and improving corporate governance in them.
Further, private partners will be tasked with turning the energy PSUs into global giants spread across the world. India wants to emerge big in the energy sector, source said. The mega strategic sales in the oil sector will be part of India’s energy security plan.


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