look news india
MUMBAI: The government is preparing to sell its majority stake in some public sector undertakings. The government has refrained from setting a disinvestment target for the current fiscal, however, the Department of Investment and Public Asset Management (DEEPAM) Shipping Corporation of India (SCI) and NMDC Steel Ltd (NSL) have completed preparations to sell 51 per cent or more stake in some undertakings, just waiting for the green signal from the Prime Minister's Office (PMO), government sources said.
Preparations for the sale of these two companies have been completed and financial bids are yet to be invited.
The government is facing opposition from employees in the sale of public sector undertakings. If we talk about NSL, then the value of its assets is going to be Rs 36930 crore according to the current market value.
The government had almost stopped the process of privatization before the Lok Sabha elections because it did not want to anger the employees of government companies.
Sources said the government will have to take a decision on selling stake in public sector undertakings from both policy and political perspective.
Currently, with a coalition government at the Centre, it is becoming difficult for policymakers to push the privatisation programme ahead. Keeping this fact in mind, it was also being said that Finance Minister Nirmala Sitharaman does not want to announce any disinvestment target in the next budget.
Meanwhile, State Bank of India has said in a report that the government should highlight the disinvestment program in public sector banks in the next budget and move forward on it.