Divestment Plan by Government
- By Keya /News and Circulars /4 months ago /4
The Government is planning its own Diwali Sale: Government is planning series of divestments for firming up the embattled Air India. Stake sales in the power companies – THDC India and Neepco will be taken up by NTPC and strategic sales in BPCL, BEML and Container Corporation of India were completed on Monday. The finalization of paperwork of Air India expression of Interest (EoI) will be gearing up the formal process of sale of the state owned Airlines. The government proposes to raise Rs.1.05 lakh crore from divestments this year. The Air India EoI will be cleared by a special mechanism which will be headed by Amit Shah.The EoI will provide all relevant details to interested buyers/investors. The government will take over about Rs.30000 crore of debt of Air India. As per the divestment plan:•BEML has got all necessary approvals. The current stake of the government in BEML is about Rs2100 crore at current prices.•The current government’s stake in BPCL which is about worth Rs.55000 crore might increase to Rs.65000 crore at the time of actual realization. The share price of BPCL remained unchanged on the BSE on Monday.•Divestment in Container Corporation would fetch about Rs.20000 crore.•SCI will get another Rs.1300 crore.The share prices of all above mentioned companies closed at higher percentages.The IRCTC initial public offer opened on Monday. The government is hoping to make the most out of surplus in the markets arising from tax cuts in the corporate sector. It is also pushing the strategic sales d public offers as we have only last six months of the fiscal year remaining.