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Business News/ Politics / Policy/  Govt to offload equity in Hindustan Copper, 2 other PSUs in Apr-Jun
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Govt to offload equity in Hindustan Copper, 2 other PSUs in Apr-Jun

Draft CCEA note moved for inter-ministerial comments for 10% stake sale in THDCIL, NEEPCO

A file photo of Tehri Dam and Hydro Electric Project. Photo: Ramesh Pathania/Mint (Ramesh Pathania/Mint)Premium
A file photo of Tehri Dam and Hydro Electric Project. Photo: Ramesh Pathania/Mint
(Ramesh Pathania/Mint)

New Delhi: Seeking to avoid bunching of public sector unit (PSU) stake sales towards the end of this fiscal, government has decided to kick off disinvestment programme in the April-June quarter of 2013-14 by offloading equity in Hindustan Copper Ltd (HCL), Tehri Dam and Hydro Electric Project (THDCIL) and North Eastern Electric Power Corp Ltd (NEEPCO).

“Draft cabinet committee on economic affairs (CCEA) note has been moved for inter-ministerial comments for 10% stake sale in THDCIL and NEEPCO. These are small issues and to be pushed for the first quarter itself," official sources said. THDCIL is a joint venture between the centre and the Uttar Pradesh government, while NEEPCO is owned by the central government.

The government has already identified around 20 companies for stake sale and sources said that 2013-14 budget is likely to fix disinvestment mop-up at Rs40,000 crore.

“Work has already started for disinvestment in next fiscal. Officials of the disinvestment department have started meeting the administrative ministries to decide on future course of action," the source said. Amongst the companies which have been identified for disinvestment next fiscal include Engineers India Ltd (EIL), Coal India Ltd, Indian Oil Corp (IOC), Power Grid Corp of India Ltd (PGCIL) and National Hydroelectric Power Corp (NHPC).

Apart from this, cabinet approval has already been accorded for disinvestment in Bharat Heavy Electricals Ltd (BHEL), Neyveli Lignite, Hindustan Aeronautics Ltd (HAL).

Also, the second tranche of HCL stake sale is likely in the April-June quarter. The government had divested 5.58% stake in HCL in the first tranche that happened in November last year.

The government had fixed Rs30,000 crore as disinvestment target for the current fiscal. So far it has been able to realise Rs21,504 crore through stake sale in five companies.

Four more companies—Steel Authority of India Ltd (SAIL), National Aluminium Company Ltd (NALCO), Metals and Minerals Trading Corp of India Ltd (MMTC) and Rashtriya Chemical and Fertilisers—are in the government list for stake sale in the current fiscal.

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Published: 24 Feb 2013, 08:11 PM IST
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