Lok Sabha Question No. 2469 (UNSTARRED), answered on 2022-08-01
Subject: Disinvestment of PSUs
Ministry: FINANCE
Asked by: K. Subbarayan

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

## LOK SABHA UNSTARRED QUESTION NO. 2469

TO BE ANSWERED ON MONDAY, AUGUST 1, 2022 SRAVANA 10, 1944(SAKA)

Disinvestment of PSUs

## 2469. SHRI SUBBARAYAN K.:

Will the Minister of FINANCE be pleased to state:

(a)  whether  it  is  a  fact  that  the  Government  had  planned  to  raise  Rs.  65,000  crore  from disinvestment in Public Sector Undertakings (PSUs) in the current  financial  year 2022-23; (b) if so, the details thereof including the companies selected for this purpose and the amount of money proposed to be collected and the extent of dilution of the Government stake in these companies;

(c)  whether  the  Initial  Public  Offerings  (IPOs)  have  been  opened  in  these  companies;  and (d) if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (DR. BHAGWAT KISHANRAO KARAD)

(a) Budget Estimates for Disinvestment receipts for FY 2022-23 have been fixed at Rs. 65,000 crore.

(b)  to  (d) The  Government  follows  a  policy  of  disinvestment  through  the  Strategic disinvestment  and  Minority  Stake  Sale.  Strategic  Disinvestment/sale  implies  entire  or substantial sale of Government shareholding of CPSEs, along with transfer of management control.  The  Government,  since  2016,  has  given  'in-principle'  approval  for  strategic disinvestment of 36 cases of CPSEs and/or Subsidiaries/ Units/ Joint Ventures of CPSEs/ Bank. Out of the 36 cases, 33 cases are being handled by DIPAM and 3 cases are being handled by the  respective  Administrative  Ministry/Department.  Out  of  the  33  cases  being  handled  by DIPAM, strategic disinvestment transactions have been completed in 10 cases; 5 CPSEs are under consideration for closure; 1 case held up due to litigation and 1 case is under Corporate

Insolvency  Resolution  Process  (CIRP)  in  NCLT.  Remaining  16  transactions  are  at  various stages. Details are given at Annexure-I.

Besides, Government carries out minority stake sale through various SEBI-approved methods such as Initial Public Offer (IPO), Offer for Sale (OFS), Buyback of shares etc. from time to time based on prevailing market conditions and investor interest.

During the current financial year 2022-23, IPO of the Life Insurance Corporation of India (LIC) has been launched. Further, the residual equity of Government of India of 19.55% in Paradeep Phosphates Ltd (PPL) has been disinvested through the IPO of the PPL.

***

## Annexure-I

Annexure to the Lok Sabha Unstarred question No. 2469 for answer on 01.08.2022

List of CPSEs and/or Subsidiaries/ Units/ Joint Ventures of CPSEs and Banks for which Government has given 'in-principle' approval for strategic disinvestment since 2016.

## a) Ongoing Transactions being processed by DIPAM

|   1. | BEML Limited                                                                                                                                         |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|    2 | The Shipping Corporation of India Limited                                                                                                            |
|    3 | HLL Lifecare Limited                                                                                                                                 |
|    4 | Project &Development India Limited                                                                                                                   |
|    5 | Ferro Scrap Nigam Limited (subsidiary)                                                                                                               |
|    6 | Indian Medicines Pharmaceuticals Corporation Limited                                                                                                 |
|    7 | Container Corporation of India Limited                                                                                                               |
|    8 | Rashtriya Ispat Nigam Ltd.                                                                                                                           |
|    9 | Nagarnar Steel Plant of NMDC Limited                                                                                                                 |
|   10 | (a) Bharat Petroleum Corporation Ltd (except Numaligarh Refinery Limited)@ (b) BPCL stake in Numaligarh Refinery Limited to a CPSE strategic buyer $ |
|   11 | Pawan Hans Limited                                                                                                                                   |
|   12 | Central Electronics Limited (CEL)                                                                                                                    |
|   13 | Engineering Project (India) Limited                                                                                                                  |
|   14 | Bridge and Roof Co. India Limited                                                                                                                    |
|   15 | Alloy Steel Plant, Durgapur^; Salem Steel Plant; Bhadrawati Steel Plant - units of Steel Authority of India Limited                                  |
|   16 | IDBI Bank                                                                                                                                            |

## b) Transactions being processed by respective Administrative Ministries

|   17. | Various Units of India Tourism Development Corporation Limited   |
|-------|------------------------------------------------------------------|
|    18 | Hindustan Antibiotics Limited                                    |
|    19 | Bengal Chemicals &Pharmaceuticals Limited                        |

## c) Transactions held up due to litigation

| 20.   | Karnataka Antibiotics &Pharmaceuticals Limited   |
|-------|--------------------------------------------------|

## d) Transactions halted as the CPSEs recommended / approved for closure; or any other reason

|   21. | Hindustan Fluorocarbons Limited (subsidiary)*                 |
|-------|---------------------------------------------------------------|
|    22 | Scooters India Limited*                                       |
|    23 | Bharat Pumps &Compressors Limited*                            |
|    24 | Hindustan Prefab Limited                                      |
|    25 | Units of Cement Corporation of India Limited (Nayagaon Unit)# |

## e) Transactions Completed

|   26. | Hindustan Petroleum Corporation Limited            |
|-------|----------------------------------------------------|
|    27 | Rural Electrification Corporation Limited          |
|    28 | HSCC(India) Limited                                |
|    29 | National Projects construction corporation Limited |
|    30 | Dredging Corporation of India Limited              |
|    31 | THDC India Limited                                 |
|    32 | North Eastern Electric Power Corporation Limited   |
|    33 | Kamrajar Port Limited                              |

|   34. | Air India **                                                        |
|-------|---------------------------------------------------------------------|
|    35 | Neelachal Ispat Nigam Limited (JV of four CPSEs and two State PSEs) |

## f) Under Corporate Insolvency Resolution Process (CIRP) in NCLT

| 36.   | Hindustan Newsprint Limited (subsidiary)***   |
|-------|-----------------------------------------------|

- ** Subsidiaries which are now with AIAHL are still to be divested

*** Resolution Plan of Kerala Industrial Infrastructure Development Corporation (KINFRA) approved by the NCLT, Kochi vide order dated 29.01.2021 is under implementation at present.

***