In a bid to push more stocks of public sector companies in the bourses, the divestment ministry has written to several ministries to provide a status report on the progress made in divesting their public sector undertakings through the stock markets.
Official sources in the ministry of heavy industries, which has the largest number of PSUs at 49, said they have been asked to present the status report and also specify the problems hindering divestment by the end of this month.
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The Centre has decided to explore the stock market route for divestment of some of the PSUs again, after the successful initial public offer for Maruti Udyog.
The Centre's optimism stems from the fact that while there has been a renewed interest in the market among retail investors, there is a lack of good scrips.
Some of the PSUs, though making losses are still sound companies, which the Centre feels will attract a sizable interest in the market.
Many of these companies had to be returned from the drawing board, as there were no takers from them under the strategic divestment route.
But the thinking in both the divestment ministry and in finance ministry is that this will not be a hindrance for realising value from the markets. The issue was flagged by former Heavy Industry Minister Vikhe Patil but could not fructify.
Meanwhile the earlier restriction of not allowing loss-making companies to raise capital from the stock market has been relaxed by the Securities and Exchange Board of India.
Heavy industry ministry officials acknowledged that though of the 49 PSUs, under the ministry of divestment, 29 have been recommended for divestment, hardly any progress has been made with none of the PSEs having been divested as yet.
Of these 29 PSUs selected for privatisation, the ministry of divestment is handling 16 PSUs. The remaining 13 are being handled by the ministry of heavy industries.
The government between 1999-2000 granted the approval for divestment for most of the 29 PSUs.
Of the 13 PSUs under the ministry, the expression of interest stage has not been completed in Hindustan Photo Films Ltd, Bharat Wagon Engineering Company Ltd, HMT Machine and Tools and Braithwaite Burn & Jessop Construction Company.
The divestment process has not been initiated as yet in Bridge and Roof Company and HMT (International) Ltd.
HMT Machine Tools Ltd attracted no EoIs last year and the ministry is planning to re-start the process after an organisational re-structuring of the company. No EoIs have been submitted for Hindustan Photo Films either.
Companies, such as Hooghly Printing Company, Hindustan Newsprint Ltd HMT Watches Ltd and HMT (Bearings) Ltd have reached the share purchase or share holder's agreement stage. The situation is similar for the 16 companies of the ministry being handled by the divestment ministry.
One of the alternatives being explored is to form a joint venture for some divisions of the companies as has been done for Andrew Yule and in CCI.