No targets for disinvestments have been fixed. As disinvestment is a continuous process, each case will be considered on a case-by-case basis and submitted for approval by government and disinvested at the opportune time.
Disinvestment of Government shareholding in NTPC Ltd. (5%) has been completed in February 2010. Disinvestments in Rural Electrification Corporation Ltd. (5%) and National Mineral Development Corporation Ltd. (8.38%) and Satluj Jal Vidut Nigam Ltd. (SJVN) (10%) through Public Offerings in the domestic market is under implementation.
The policy on disinvestment requires the development of “people ownership†of CPSEs to share in their wealth and prosperity with government retaining majority shareholding and control.
The proceeds from disinvestment would be channelised into National Investment Fund and proceeds thus deposited from April 2009 to March 2010 would be utilized in full for meeting the capital expenditure requirements of selected Social Sector Programmes decided by the Planning Commission/Department of Expenditure. The status quo ante will be restored from April 2012.
This information was given by Shri Arun Yadav, Minister of State for Heavy Industries and Public Enterprises in a written reply to a question in Rajya Sabha today.
India
Disinvestments of PSUs, mandatory public shareholding to be strictly implemented
Special Correspondent - 2010-02-23 18:49
New Delhi: Government has decided that already listed profitable Central Public Sector Enterprises (CPSEs) not meeting the mandatory public shareholding requirement of 10% are to be made compliant and all CPSEs having positive networth, no accumulated losses and having earned net profit for three preceding consecutive years, are to be listed through public offerings out of Government shareholding or issue of fresh equity by the company or a combination of both.