New Delhi, Dec 1 (Inditop.com) Finance Minister Pranab Mukherjee Tuesday said the government was not seeking to divest more than 10 percent in state-run firms for now, but would do so in three firms by the end of March.
“We will not sell more than 10 percent stake in listed state-run firms at this stage,” Finance Minister Pranab Mukherjee told parliament.
The minister also said the government would complete divestment in three power utilities — NTPC, Sutlej Jal Vidyut Nigam (SJVN) and Rural Electrification Corp (REC) — before the end of this fiscal.
“Disinvestment of government shareholding in NTPC, SJVN and REC through public offering in the domestic market, is under implementation. These public offerings are likely to be completed by March 31, 2010,” Mukherjee said in a statement in Rajya Sabha.
A five-percent stake would be sold in the capital markets in NTPC and REC, while it would be 10 percent in SJVN, the minister added.
Responding to a question on disinvestment of government shares in profit-making central public enterprises (CPSEs), Mukherjee said: “Already, listed profitable CPSEs not meeting the mandatory public shareholding of 10 percent are to be made compliant.”
As per statistics available for 2007-08, there were 10 listed state-run firms with less than 10 percent public holding. Some 50 others met the criteria of having made profits in the past three years with a positive net worth.
Among these, two are listed on the bourses. The government holds 89.5 percent in NTPC and 81.82 percent in Rural Electrification Corp.
The government has already divested stake in two companies — National Hydroelectric Power Corp and oil explorer OIL, formerly Oil India Ltd
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