New Delhi: India is all set to undertake the strategic sale of state-owned companies for the first time after the Atal Bihari Vajpayee government started the process.
The Union cabinet on Thursday gave in-principle approval to Niti Aayog’s proposal for strategic sale in over a dozen public sector undertakings including those that are making profits.
The government will give up management control in these PSUs as the Centre plans to bring its stake in these companies under 50 per cent.
The PSUs for strategic sale will be decided on case to case basis. The Cabinet also approved closure of loss making HMT’s tractor division by offering VRS at 2007 notional pay scales.
“The recommendations made by the NITI Aayog with regard to both the disinvestment and strategic sale came up for consideration. In principle the Cabinet has approved the recommendations with regard to some of the units,” said Union finance minister Arun Jaitley.
“Some of these are important units and since each unit would be considered on its own merit, the timing of that would be decided by the government accordingly,” said Mr Jaitley.
While evaluating the valuation of these firms, government will also take into account immovable property and other assets under these PSUs.
PSUs for strategic sale will be considered by Cabinet separately after it has been examined by the Department of Disinvestment and the ministries concerned.
The methodology, price fixation and base price for each of the PSUs will be further decided by the DIPAM.
“So in-principle it has been approved. Specific cases would now come up after a detailed examination as to how it is to be done in each case and the details with regard to the units concerned will be furnished at that stage. This list does not include PSUs for closure,” he said.
On the timeline for the sale, FM said that he was not going to allow it to “be under sold merely because there is a calendar limitation.”
