(ET)
The government proposes to offload substantial stake in at least 10 blue chip companies this year to meet its higher disinvestment target, even though the exercise will bring down its holding in these state-run firms to below 51 per cent level, official sources said here on Wednesday. The minimum government holding required for an entity to qualify as a central public sector enterprise (CPSE) is 51 per cent.
The sources said the Department of Investment and Public Asset Management (DIPAM) would soon start consultations with the Power, Petroleum and Heavy Industries Ministries to initiate the disinvestment process for some CPSEs under their administrative control where government stakes are slightly more than 51 per cent.
Though this list of companies is yet to be finalised, the discussions are expected to revolve around companies such as Indian Oil Corporation (IOC), NTPC, Bharat Petroleum Corporation Ltd (BPCL), NALCO, GAIL India, Oil India Ltd (OIL), Engineers India Ltd (EIL), Power Grid Corporation (PGCIL) and Bharat Heavy Electricals (BHEL). In the majority of identified companies, the government’s current holding is just over 51 per cent. Only in BHEL and OIL, the government still holds just over 60 per cent stake.
