Lok Sabha Question No. 3656 (UNSTARRED), answered on 2019-12-10
Subject: Disinvestment Policy in CPSUs
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Ganesh Singh

## MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES

## GOVERNMENT OF INDIA DEPARTMENT OF PUBLIC ENTERPRISES

## LOK SABHA

UNSTARRED QUESTION No. 3656

TO BE ANSWERED ON 10.12.2019

## Disinvestment Policy in CPSUs

## 3656. SHRI GANESH SINGH:

Will the Minister of HEAVY INDUSTRIES & PUBLIC ENTERPRISES be pleased to state:

- (a) whether the Government's stake in some Central Public Sector Undertakings (CPSUs) is 50 per  cent  or  below 50 per cent and if so, the details along with date of disinvestment since inception of disinvestment policy in CPSUs, company-wise;
- (b) the details and salient features of stake of 50 per cent or below 50 per cent in CPSUs along with the details of stake of BPCL in Bina Refinery;
- (c) the details of rule of law for application of reservation policy in services where disinvestment is done 50 per cent or below 50 per cent;
- (d) whether it is a fact that in sectors of strategic importance such as defence and oil, the stake of the Government should not fall below 51 per cent as per constitution and other laws; and
- (e) if so, the details thereof and the action taken by the Government in this regard?

## ANSWER

## THE MINISTER OF STATE FOR HEAVY INDUSTRIES & PUBLIC ENTERPRISES (SHRI ARJUN RAM MEGHWAL)

(a) & (b): As per the Public Enterprise Survey (PES), which is laid every year in both the Houses of the  Parliament  by  Department  of  Public  Enterprises  (DPE),  certain  statutory  corporations  and  all Government  Companies  in  which  more  than  50%  equity  is  held  by  the  Central  Government  are classified  as  Central  Public  Sector  Enterprises  (CPSEs).  The  Subsidiaries  of  these  Companies  in which any CPSE has more than 50% equity are also categorized as CPSEs, if registered in India.

As  per  the  information  furnished  by  the  Department  of  Investment  and  Public  Asset Management (DIPAM), details of CPSEs divested during the last 3 years in which Government of India stake has fallen below 50% are as under:

|   S. No. | CPSE divested                                   | Year of Disinvestment   | Present GoI shareholding   |
|----------|-------------------------------------------------|-------------------------|----------------------------|
|        1 | Hindustan Petroleum Corporation Ltd             | 2017-18                 | 0%                         |
|        2 | HSCC Ltd.                                       | 2017-18                 | 0%                         |
|        3 | National Projects Construction Corporation Ltd. | 2018-19                 | 0%                         |
|        4 | Dredging Corporation of India Ltd               | 2018-19                 | 0%                         |
|        5 | Rural Electrification Corporation Ltd.          | 2018-19                 | 0%                         |

Ministry of Petroleum & Natural Gas has informed that Bharat Petroleum Corporation Ltd.  holds 50% stake in Bharat Oman Refineries Ltd.(BORL) located at Bina, Madhya Pradesh.

(c):  Details  of  the  rule  of  law  for  application  of  reservation  policy  in  services  is  not  dealt  by Department of Public Enterprises. However, in CPSEs the reservation policy is applicable.

(d)  &  (e):  DIPAM  has  informed  that  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 CPSEs based on the criteria of (i) National Security; (ii) Sovereign function at arm's length, and (iii) Market Imperfections and Public Purpose.

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