The Union Cabinet announced that it will sell its entire stake of the oil firm Bharat Petroleum Corporation Limited (BPCL). It also decided to reduce its holding in public sector units (PSU) of Concor, SCI, and IOC. The privatization move amidst tepid growth is aimed at reviving the sectors.
Crux of the Matter
The government has announced that it will sell its entire 53.29% stake in the BPCL and transfer management rights once the Numaligarh refinery is sold. The potential investor is likely to benefit from BPCL’s 15,000 retail stations and 37 mn tonnes per annum-capacity refinery.
The Cabinet Committee on Economic Affairs (CCEA) has also approved the privatization of the Shipping Corporation of India (SCI). It will sell 53.75% of its 63.75% stake.
The government also decided to sell 30.9% of its 54.80% stake of the Container Corporation of India (Concor) to revive the revenue hit company.
Stake in the Indian Oil Corporation (IOC) will be reduced to below 51% and management control will be retained, said the government.
Cabinet has also approved the sale of government stake in Tehri Hydro Development Corporation Limited (THDC India Ltd) and North Eastern Electric Power Corp Ltd (NEEPCO) to NTPC Ltd.
Curiopedia
Disinvestment in Public sector units in India, is process of public asset sales by President of India on behalf of Government of India, directly or indirectly in the capitalized market. Since financial year 1991-92 to 2017-18 government sold total public assets of ₹ 3,47,439 Crore. In past recent years Public sector undertaking units performed well as compared to other private competitors and paid huge dividends to government. Read More
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