Lok Sabha Question No. 2532 (UNSTARRED), answered on 2017-03-17
Subject: Sale of CPSEs
Ministry: FINANCE
Asked by: SISIR KUMAR ADHIKARI

## GOVERNMFNT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF INVESTMENT AND PUBLIC ASSET MANAGEMENT

## LOK SABHA

## UNSTARRED QUESTION NO. 2532 TO BE ANSWERED ON FRIDAY, MARCH 17, 2017 PHALGUNA 26, 1938 (SAKA)

## Sale of CPSEs

## 2532. SHRI SISIR KUMAR ADHIKARI:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has any   proposal to sell the stake of   the State-run companies of Central Public Sector Enterprises (CPSEs) during the next two fiscal years and if s0, the details thereof;
- if so, the   details thereof and the manner  in which the funds have been  utilized alongwith the proposal for the next sale;
- whether the Government has raised funds by selling of the stake of CPSEs;
- whether the fund is managed by private firms; and
- (e) the present status of stake in the Navaratna CPSEs?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ARJUN RAM MEGHWAL)

(a): Disinvestment in Central Public Sector Enterprises (CPSEs) is undertaken aS per the extant  disinvestment  policy of the Government on 'minority stake sale disinvestment

As a part of the strategy to shares readily available for transaction to take advantage of market conditions without any loss of time, the Government has identified some CPSEs for minority stake sale in sectors like mineral & metal, oil, capital as well as some midsize and small stocks: keep goods

Government has given in-principle' approval for strategic disinvestment of some CPSEs, Units of CPSEs and subsidiaries of CPSEs. However, after completion of the process, specific approval of Government will be sought in each case.

(6) current   tinancial year  2016-17, the Government has   realized Rs.39,368.69 crore ( a8 on 28th February, 2017) as disinvestment receipts:

The receipts from the disinvestment are credited in the National Investment Fund (NIF) a account and are used for the following approved purposes: public

- Subscribing to shares issued the CPSEs   including PSBs and Public Sector Insurance Companies, on rights basis S0 as to ensure 51% ownership of the Government in those CPSEs/PSBs/Insurance Companies, is not diluted; being by
- (ii) Preference allotment of shares of the CPSE to promoters a8 per SEBI (Issue of Capital and Disclosure  Requirements) Regulations, 2009 so that Government shareholding does not go down below 51% in all cases where the CPSE is going to raise fresh equity to meet its Capex programme;
- (iii) Recapitalization of public sector banks and sector insurance companies; public
- (iv) Investment by Government in RRBs/IIFCLINABARD/Exim Bank;
- (v) Equity infusion in various Metro projects;
- (vi) Investment in Bhartiya   Nabhikiya Vidyut Nigam Limited and Uranium Corporation of India Ltd;
- (vii) Investment in Indian Railways towards capital expenditure.
- (e): The stake of the Government in the Navratna CPSEs during 2015-16 is as follows:

Rs. In Lakh)

| S: No:   | CPSEs                               |   Central Govt: participation in Equity | Total paid-up Capital   |
|----------|-------------------------------------|-----------------------------------------|-------------------------|
| 1        | Bharat Electronics Ltd.             |                                   18004 | 24000                   |
| 2        | Bharat Petroleum Corpn Ltd          |                                   39720 |                         |
| 3        | Container Corporation of India Ltd. |                                   11073 | 19497                   |
| 4        | Engineers India Ltd                 |                                   10002 | 16847                   |
| 5        | Hindustan Aeronautics Ltd.          |                                   36150 | 36150                   |
|          | Hindustan Petroleum Ltd. Corpn:     |                                   17308 | 33901                   |
|          | Mahanagar Telephone Ltd_ Nigam      |                                   35438 | 63000                   |
|          | National Aluminium Company Ltd.     |                                  104289 | 128862                  |
|          | NBCC (India) Ltd.                   |                                   10800 | 12000                   |
| 10       |                                     |                                  150994 | 167771                  |
| 11       | NMDC Ltd.                           |                                   31719 | 39647                   |
| 12       | Oil India Ltd                       |                                   40662 | 60114                   |
| 13       | Power Finance Corporation Lta_      |                                   89492 | 132004                  |
| 14       | Power Grid Corporation of India Ltd |                                  302884 | 523159                  |
| 15       | Rashtriya Ispat Nigam Ltd.          |                                  488985 | 488985                  |
| 16       | Rural Electrification Corpn. Ltd.   |                                   59877 | 98746                   |
| 17       | Shipping Corporation of India Ltd   |                                   29694 | 46580                   |