Bringing an end to months of anticipation over the government lowering its stake in major public sector undertakings (PSU), the Union Cabinet on Wednesday approved strategic disinvestment in five PSUs.
Addressing the media after the Cabinet meeting, Finance Minister Nirmala Sitharaman said the Centre would strategically disinvest Bharat Petroleum Corporation Ltd (BPCL), Shipping Corporation of India (SCI), Container Corporation of India (CONCOR), THDC India Ltd and North Eastern Electric Power Corporation (NEEPCO).
Here are five key takeaways from Nirmala Sitharaman's media briefing:
The Cabinet Committee on Economic Affairs (CCEA) approved sale of government's entire 53.29 per cent stake along with transfer of management control in the country's second-biggest state-owned refiner Bharat Petroleum Corp Ltd (BPCL) after taking out Numaligarh refinery from its fold, Finance Minister Nirmala Sitharaman told reporters.
It also approved the sale of an entire 63.75 per cent government holding in Shipping Corp of India (SCI) and a 30.8 per cent stake in Container Corp of India (Concor).
The government will sell its entire holding in THDC India and North Eastern Electric Power Corp Ltd (NEEPCO) to state power generator NTPC Ltd, the Finance Minister said.
Parallelly, the Cabinet has also approved reducing government stake in select PSUs such as Indian Oil Corp (IOC) to below 51 per cent while continuing to retain management control.
Sitharaman also said Numaligarh Refinery will be handed over to the public sector oil company to allay concerns of the North East over privatisation move. BPCL's equity shareholding of 61.65 per cent in Numaligarh Refinery Ltd (NRL) and management control will be transferred to a Central Public Sector Enterprise (CPSE) operating in the oil and gas sector, she said.