Centre set to rejig privatisation process for non-strategic sectors

What is the News? The government of India is set to approve several changes in the privatisation process for companies in non-strategic sectors. Background Recently, the Government of India has released a new ‘Public Sector Enterprise Policy’. The policy classifies public sector commercial enterprises into strategic and non-strategic sectors. In the strategic sectors, there would… Continue reading Centre set to rejig privatisation process for non-strategic sectors

Centre plans to give some strategic disinvestment powers to DPE

What is the news? The central government has decided to give some powers in the strategic disinvestment process to the Department of Public Enterprise (DPE). This department has been brought under the Ministry of finance. How does the current disinvestment process work? As per the current process, NITI Aayog identifies companies for disinvestment. This proposal… Continue reading Centre plans to give some strategic disinvestment powers to DPE

After selling the Maharajah

News: The gains from the sale of Air India would be incomplete if follow-up steps are not taken to reorganise the civil aviation ministry. Reforms of this ministry are long overdue, and the Air India sale should expedite such a decision. What does the Union civil aviation ministry do? The ministry is responsible for formulating… Continue reading After selling the Maharajah

Privatisation is far more difficult than consolidation

Synopsis: The government is looking to privatise the PSBs for strengthening the banking sector. But the Privatisation of PSBs is a complex one. Introduction Recently, the Finance Minister mentioned that India needs more banks to match the scale of the nation’s largest lender, the State Bank of India. This is because India (Asia’s third-largest economy) is… Continue reading Privatisation is far more difficult than consolidation

Privatisation of Air India – Explained, pointwise

For 7PM Editorial Archives click HERE → Introduction Government has approved Tata Group’s Rs 18,000-crore bid for the state-owned carrier, Air India. The deal, which is expected to be completed by December-end, also includes sale of Air India Express and ground handling arm AISATS. Air India had a total debt of ₹61,562 crore as on August 31. Of this, Tata… Continue reading Privatisation of Air India – Explained, pointwise

Cabinet approves strategic disinvestment of BPCL,4 other PSUs

News:Union Cabinet chaired by the Prime Minister has approved the strategic disinvestment of BPCL and four other Public Sector Units(PSUs). Facts: About the units for disinvestment:The Public Sector Units approved for strategic disinvestment are  Bharat Petroleum Corp Ltd (BPCL).The Numaligarh Refinery Limited operating under BPCL is excluded. Shipping Corporation of India (SCI) Container Corporation of… Continue reading Cabinet approves strategic disinvestment of BPCL,4 other PSUs

Cabinet approves new strategic disinvestment process

News:Union Cabinet has approved a new process of strategic disinvestment with a view to expediting privatization of select PSUs. Facts: What are the new changes? Under the new policy, the Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance has been made the nodal department for the strategic disinvestment sale. Currently,… Continue reading Cabinet approves new strategic disinvestment process

‘FPI tax issues put divestment at risk’

The government may miss its disinvestment target of ₹1.05 lakh crore that has been set for the current financial year.Disinvestment is defined as the action of an organisation or government selling or liquidating an asset or subsidiary. The target may be missed as foreign portfolio investors(FPIs) could stay away from such share sales if the… Continue reading ‘FPI tax issues put divestment at risk’

Govt. must reduce borrowing by divesting stake in PSEs: Acharya

According to Reserve Bank of India Deputy Governor,an increase in government borrowing runs the risk of flooding the debt market which will make it expensive for companies to borrow. He said that the disinvestment in public sector enterprises(PSEs) would help in alleviating the effects of the government’s borrowing in the country. He also said serious… Continue reading Govt. must reduce borrowing by divesting stake in PSEs: Acharya

Centre raises over Rs 10,000 crore on net basis via CPSE ETF

The Central Government has raised over Rs 10,000 crore on a net basis from the 5th further fund offer(FFO) of the Central Public Sector Enterprises(CPSE) Exchange Traded Fund(ETF). The government aims to raise Rs 1.05 lakh crore through disinvestment in 2019-20 up from Rs 85,000 crore raised last fiscal.Disinvestment is defined as the action of… Continue reading Centre raises over Rs 10,000 crore on net basis via CPSE ETF

Govt readies plan for second wave of asset monetisation

Government will soon recommend a second list of Public Sector Units (PSU) assets that could be monetised to raise resources for fresh investment by these undertakings. The Union Budget 2019 has set a high target of Rs 1.05 lakh crore from disinvestment for the current fiscal year compared with Rs 90,000 crore in the Interim… Continue reading Govt readies plan for second wave of asset monetisation

Public sector enterprises to get 12 months to sell non­ core assets

Central Public Sector Enterprises(CPSEs) has been given 12 months to monetise non-core assets failing which the finance ministry may restrict budgetary allocations to the companies.Non-core assets are assets that are either not essential or simply no longer used in a company’s business operations. Earlier,Department of Investment and Public Asset Management (DIPAM) had issued the guidelines… Continue reading Public sector enterprises to get 12 months to sell non­ core assets

Govt. earns ₹85,000 crore from disinvestment, overshoots target

Government has exceeded the disinvestment target of Rs 80,000 crore set for the Financial Year 2019,which ends in March.Disinvestments have touched ₹85,000 crore which is Rs 5,000 crore more than the set target.The next financial year’s disinvestment target has been set at Rs 90,000 crore. The government was able to reach its target after it… Continue reading Govt. earns ₹85,000 crore from disinvestment, overshoots target

Disinvestment target within reach: Centre

The government is close enough to reach its disinvestment target of Rs 80,000 crore for the current fiscal year(2018-19).While,for the next fiscal (2019-2020),the government has set disinvestment target of Rs 90,000 crore.Disinvestment is defined as the action of an organisation (or government) selling or liquidating an asset or subsidiary. Earlier,Government got Rs 10,000 crore from… Continue reading Disinvestment target within reach: Centre

Bidders seek extension for Pawan Hans bids

The bidders of Pawan Hans have sought extension to submit their financial bids for buying the government and Oil and Natural Gas Corporations (ONGC) stake in the helicopter service provider.The government holds 51%stake in Pawan Hans.The remaining 49% is with state-run ONGC. Last year,government had invited bids from entities,saying that along with its 51 per… Continue reading Bidders seek extension for Pawan Hans bids

Government to Raise Rs 3,500 Crore Via CPSE ETF Sale

The government has planned to launch an additional offering of Central Public Sector Enterprises (CPSE) Exchange Traded Fund (ETF).It seeks to raise at least Rs 3,500 crore in disinvestment. The government disinvestment target for the current fiscal year(2018-19) is Rs 80,000 crore.While,for the next fiscal (2019-2020),the government has set disinvestment target of Rs 90,000 crore.Disinvestment… Continue reading Government to Raise Rs 3,500 Crore Via CPSE ETF Sale

Cabinet approves creation of SPV for Air India divestment

The Cabinet has approved the setting up of a special purpose vehicle (SPV) for the disinvestment of Air India and its subsidiaries. Disinvestment is defined as the action of an organisation (or government) selling or liquidating an asset or subsidiary. The name SPV is given to an entity which is formed for a single, well-defined… Continue reading Cabinet approves creation of SPV for Air India divestment

Centre to sell its entire stake in Dredging Corporation

Centre to sell its entire stake in Dredging Corporation News: The Cabinet Committee on Economic Affairs (CCEA) has approved divestment of its entire 73.44 percent stake in Dredging Corporation of India to a consortium of four ports. Important Facts: 2. The consortium of four ports are namely Vishakhapatnam Port Trust, Paradeep Port Trust, Jawahar Lal… Continue reading Centre to sell its entire stake in Dredging Corporation