The Union Government has till date given in-principle approval for disinvestment of 33 Central Public Sector Enterprises (CPSEs). These 33 CPSEs include subsidiaries, units and even Joint Ventures. Under this strategic disinvestment, the Central Government will be selling its majority stake and will transfer the management control to the investor.
These 33 CPSEs are not only profit-making but loss-making ones as well. Government considers the of strategic disinvestment of those CPSEs which are not in the ‘priority sectors’.
The Central Government has mandated the NITI Aayog to identify the CPSEs that require disinvestment. The NITI Aayog identifies such CPSEs based on the certain criteria laid down by the Central Government itself. The detailed criteria along with the complete list of CPSEs are mentioned below.
Criteria followed by NITI Aayog to identify the CPSEs that require disinvestment:
- National Security
- Sovereign function at arm’s length
- Market Imperfections and Public Purpose
Note: Profitability or loss of the CPSEs is not considered as a relevant criterion.
Disinvestment targets set by the Finance Ministry over the last five years
| Year | Budget Estimate | Revised Estimate | Actual Realisation |
| 2018-19 | 80,000 | 80,000 | 84,972 |
| 2017-18 | 72,500 | 1,00,000 | 1,00,057 |
| 2016-17 | 56,500 | 40,500 | 46,247 |
| 2015-16 | 69,500 | 25,313 | 23,997 |
| 2014-15 | 43,425 | 26,353 | 24,349 |
Why Strategic Disinvestment?
The Government undertakes the Strategic disinvestment of CPSEs when it considers that the need has arrived when it should discontinue investment in sectors demanding technological advancement, capital infusion and resourceful management practices. In such a scenario, the management of such entities or organizations should better be left in the hands of strategic investors such as Private Companies and MNCs.
It must be noted that the success of disinvestment depends upon factors like the interest of strategic investors and prevailing market conditions.
Complete list of 33 CPSEs: Disinvestment Completed; Disinvestment in process & Recent Approvals
| S.No. | CPSE | Administrative Ministry/Department | ||
| Disinvestment Completed | ||||
| 1 | Hindustan Petroleum Corporation Ltd. | Ministry of Petroleum and Natural Gas | ||
| 2 | Rural Electrification Corporation Ltd. | Ministry of Power | ||
| 3 | Hospital Services Consultancy Ltd. | Ministry of Health and Family Welfare | ||
| 4 | National Projects Construction Corporation | Ministry of Water Resources | ||
| 5 | Dredging Corporation of India | Ministry of Shipping | ||
| Disinvestment in process | ||||
| 6 | Project & Development India Ltd. | Department of Fertilizers | ||
| 7 | Hindustan Prefab Ltd. | Ministry of Housing and Urban Affairs | ||
| 8 | Engineering Projects (India) Ltd. | Department of Heavy Industry | ||
| 9 | Bridge & Roof Co. India Ltd. | Department of Heavy Industry | ||
| 10 | Hindustan Newsprint Ltd. | Department of Heavy Industry | ||
| 11 | Scooters India Ltd. | Department of Heavy Industry | ||
| 12 | Bharat Pumps and Compressors Ltd. | Department of Heavy Industry | ||
| 13 | Cement Corporation of India Ltd. | Department of Heavy Industry | ||
| 14 | Hindustan Fluorocarbon Ltd. | Department of Chemicals & Petrochemicals | ||
| 15 | Central Electronics Ltd. | Department of Scientific and Industrial Research | ||
| 16 | Bharat Earth Movers Ltd. | Department of Defence Production | ||
| 17 | Ferro Scrap Nigam Ltd. (Subsidiary) | Ministry of Steel | ||
| 18 | Nagarnar Steel Plant of NMDC | Ministry of Steel | ||
| 19 | Alloy Steel Plant; Salem Steel Plant | Ministry of Steel | ||
| 20 | Pawan Hans Ltd. | Ministry of Civil Aviation | ||
| 21 | Air India and its five subsidiaries and one JV | Ministry of Civil Aviation | ||
| 22 | HLL Lifecare | Ministry of Health | ||
| 23 | Indian Medicines & Pharmaceutical Corporation Ltd. | Ministry of Ayush | ||
| 24 | Kamarajar Port Limited | Ministry of Shipping | ||
| 25 | Indian Tourism Development Corporation | Ministry of Tourism | ||
| 26 | Karnataka Antibiotics and Pharmaceuticals Ltd. | Department of Pharmaceuticals | ||
| 27 | Hindustan Antibiotics Ltd. | Department of Pharmaceuticals | ||
| 28 | Bengal Chemicals and Pharmaceuticals Ltd. | Department of Pharmaceuticals | ||
| Recent approval for strategic disinvestment | ||||
| 29 | (a) Bharat Petroleum Corporation Ltd – BPCL (except Numaligarh Refinery Limited) (b) BPCL stake in Numaligarh Refinery Limited | Ministry of Petroleum and Natural Gas | ||
| 30 | Shipping Corporation of India Ltd. | Ministry of Shipping | ||
| 31 | Container Corporation of India Ltd. | Ministry of Railways | ||
| 32 | THDC India Limited | Ministry of Power | ||
| 33 | North Eastern Electric Power Corp. Ltd. | Ministry of Power | ||
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