Search the Internet          Tips  Sites: Finance, Investment

Govt completes sell-off in 42 CPSEs

The government had completed divestment of 42 central public sector enterprises till 2001 netting Rs 202.61 billion.

The divestment completed so far accounted for 16 per cent equity of the 42 CPSEs, Minister for Heavy Industries and Public Enterprises Manohar Joshi said at a meeting of the parliamentary consultative committee attached to his ministry.

Other than Lagan Jute Machinery Company Ltd and Modern Food Industries Ltd, only minority stake in different PSEs was sold till 2000.

With the streamlined procedure for divestment and privatisation, government has now completed strategic sale in seven PSEs and some properties of the Hotel Corporation of India Ltd and India Tourism Development Corporation Ltd.

Divestment receipts for the year 2001-02 are estimated at Rs 50 billion.

The members were told that in case of loss making PSEs, divestment also offers a way for survival. It would ensure flow of financial, technological and managerial inputs through the strategic partner.

In the liberalised market environment, it would also facilitate releasing the PSEs from government control and introduction of corporate governance in the privatised companies.

ALSO READ:
The Divestment Development
The Rediff Budget Special
Money
Business News

Tell us what you think of this report