Govt plans to sell stake in 5 PSUs in 2013-14

To achieve its disinvestment target for the current financial year, the government plans to offload 5-10 per cent stake in five companies, including IOC, Engineers India (EIL) and BHEL.

Minister of State for Finance J D Seelam in a written reply to the Lok Sabha on Friday said the government has approved disinvestment of 10 per cent stake each in Indian Oil Corp (IOC), Hindustan Aeronautics, Rashtriya Ispat Nigam Ltd (RINL) and EIL. Also, it has approved the proposal of 5 per cent stake sale in BHEL.

Further, the government has also approved the proposal for a strategic stake sale in Tyre Corporation of India Ltd (TCIL), he added.

So far in the current financial year, the government has realised Rs 1,325.27 crore through stake sale in six companies - MMTC, Hindustan Copper, Neyveli Lignite, National Fertilisers, STC and ITDC.

The disinvestment target for the current fiscal has been fixed at Rs 40,000 crore.

"The policy of the government is to disinvest only minority stake and to retain at least 51 per cent equity and the management control; thus public sector character of the CPSE will be maintained and therefore interests of the employees are fully protected," Seelam said.

The proceeds from PSU stake sale are credited to the National Investment Fund (NIF) for meeting the recapitalisation needs of CPSEs or PSU banks, insurance companies and other public sector financial institutions.