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Disinvestment of 33 CPSEs: Air India, BPCL, 31 others get strategic disinvestment

Disinvestment of CPSEs: Under the strategic disinvestment of 33 CPSEs, the Central Government will be selling its majority stake and will transfer the management control to the investor.

Dec 4, 2019 10:30 IST
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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

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

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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