NEW DELHI: The Union Government has given in-principle approval for strategic disinvestment of 33 Central Public Sector Enterprises (CPSEs) including subsidiaries, Units and Joint Ventures with the sale of a majority stake of Government of India and transfer of management control. This was stated by Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs, in a written reply to a question in Rajya Sabha today.
These include profit-making as well as loss-making CPSEs. Government follows a policy of strategic disinvestment of CPSEs, which are not in priority sectors For this purpose, NITI Aayog has been mandated to identify such CPSEs based on the criteria of (i) National Security; (ii) Sovereign function at arms length, and (iii) Market Imperfections and Public Purpose. However, profitability/loss of the CPSEs is not among the relevant criteria.
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.
Criteria followed by NITI Aayog to identify the CPSEs that require disinvestment:
- National Security
- Sovereign function at arms 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 yearsYearBudget EstimateRevised EstimateActual Realisation2018-1980,00080,00084,9722017-1872,5001,00,0001,00,0572016-1756,50040,50046,2472015-1669,50025,31323,9972014-1543,42526,35324,349
Complete list of 33 CPSEs: Disinvestment Completed; Disinvestment in process & Recent ApprovalsS.No.CPSEAdministrative Ministry/DepartmentDisinvestment Completed 1Hindustan Petroleum Corporation Ltd.Ministry of Petroleum and Natural Gas 2Rural Electrification Corporation Ltd.Ministry of Power 3Hospital Services Consultancy Ltd.Ministry of Health and Family Welfare 4National Projects Construction CorporationMinistry of Water Resources 5Dredging Corporation of IndiaMinistry of ShippingDisinvestment in process6 Project & Development India Ltd.Department of Fertilizers7Hindustan Prefab Ltd.Ministry of Housing and Urban Affairs8Engineering Projects (India) Ltd.Department of Heavy Industry9 Bridge & Roof Co. India Ltd.Department of Heavy Industry10Hindustan Newsprint Ltd.Department of Heavy Industry11 Scooters India Ltd.Department of Heavy Industry 12Bharat Pumps and Compressors Ltd.Department of Heavy Industry 13Cement Corporation of India Ltd.Department of Heavy Industry 14Hindustan Fluorocarbon Ltd.Department of Chemicals & Petrochemicals 15Central Electronics Ltd.Department of Scientific and Industrial Research 16Bharat Earth Movers Ltd.Department of Defence Production 17Ferro Scrap Nigam Ltd. (Subsidiary)Ministry of Steel 18Nagarnar Steel Plant of NMDCMinistry of Steel 19Alloy Steel Plant; Salem Steel PlantMinistry of Steel 20Pawan Hans Ltd.Ministry of Civil Aviation 21Air India and its five subsidiaries and one JVMinistry of Civil Aviation 22HLL LifecareMinistry of Health 23Indian Medicines & Pharmaceutical Corporation Ltd.Ministry of Ayush 24Kamarajar Port LimitedMinistry of Shipping 25Indian Tourism Development CorporationMinistry of Tourism 26Karnataka Antibiotics and Pharmaceuticals Ltd.Department of Pharmaceuticals 27Hindustan Antibiotics Ltd.Department of Pharmaceuticals 28Bengal Chemicals and Pharmaceuticals Ltd.Department of PharmaceuticalsRecent approval for strategic disinvestment 29(a) Bharat Petroleum Corporation Ltd BPCL (except Numaligarh Refinery Limited)
(b) BPCL stake in Numaligarh Refinery LimitedMinistry of Petroleum and Natural Gas 30Shipping Corporation of India Ltd.Ministry of Shipping 31Container Corporation of India Ltd.Ministry of Railways 32THDC India LimitedMinistry of Power 33North Eastern Electric Power Corp. Ltd.Ministry of Power
A government generally 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.