Lok Sabha Question No. 3003 (UNSTARRED), answered on 2023-03-20
Subject: Disinvestment and Sale of PSUs
Ministry: FINANCE
Asked by: Dibyendu Adhikari

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF INVESTMENT AND PUBLIC ASSET MANAGEMENT

## TO BE ANSWERED ON MONDAY, MARCH 20, 2023

## LOK SABHA UNSTARRED QUESTION NO. 3003 Phalguna 29, 1994 (Saka)

## Disinvestment and Sale of PSUs

## No. 3003.                                                      SHRI DIBYENDU ADHIKARI:

Will the Minister of FINANCE be pleased to state:

- (a) whether  the  Government  proposes  to  sell  and/or  disinvest  any Public Sector Undertakings (PSUs) and if so, the details thereof;
- (b) whether the Government has identified any PSUs for the sale and disinvestment and if so, the details and the present status thereof along with the proposals of sale and disinvestment of any PSUs to be taken up by the Government in the coming years; and
- (c) the present shares of PSUs under the DIPAM and the proposal, if any,  of  the  Government  on  the  modernisation  and  capacity expansion of those PSUs?

## ANSWER

## THE MINISTER OF STATE IN MINISTRY OF FINANCE

(DR. BHAGWAT KISHANRAO KARAD)

(a) to (b):   The Government, since 2016, has given 'in-principle' approval  for  strategic  disinvestment  of  36  cases  of  Public  Sector Enterprises (PSEs) and/or Subsidiaries/ Units/ Joint Ventures of PSEs/ Bank. Out of the 36 cases, 33 cases are being handled by Department of Investment and Public Asset Management (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  PSEs  are  under consideration for closure; 1 case is held up due to litigation, 1 case is under Corporate Insolvency Resolution Process (CIRP) in NCLT and 2 transactions are under review for feasibility.  Remaining 14 transactions are at various stages. Details are given at Annexure-I.

In  other  PSEs,  where  the  Government  continues  to  retain  control, disinvestment through minority stake sale is carried out 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.

(c)      The modernisation and capacity expansion of PSEs are taken up by the respective Boards of PSEs under the administrative control of different Ministries.

*****

Annexure  to  Lok  Sabha  Unstarred  Question  No.  3003  for  reply  on 20.03.2023.

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

## 1. Ongoing Transactions being processed by DIPAM

|   S.No. | Name of PSE                                                                                                                                         |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
|       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 | NMDC Steel Limited (NSL)                                                                                                                            |
|      10 | (a) Bharat Petroleum Corporation Ltd (except Numaligarh Refinery Limited)@ (b) BPCL stake in Numaligarh Refinery Limited to a PSE strategic buyer $ |
|      11 | Pawan Hans Limited                                                                                                                                  |
|      12 | Central Electronics Limited (CEL)##                                                                                                                 |

|   13. | Alloy Steel Plant, Durgapur^; Salem Steel Plant; Bhadrawati Steel Plant @ - units of Steel Authority of India Limited   |
|-------|-------------------------------------------------------------------------------------------------------------------------|
|    14 | IDBI Bank.                                                                                                              |

## $Transaction completed.

- ^ Transaction halted for the time being.
- @ EoI process called off due to lack of sufficient Bidder's interest to proceed.

## Successful bidder disqualified and transaction has been terminated.

## 2. Transactions being processed by respective Administrative Ministries

|   S.No. | Name of PSE                                                    |
|---------|----------------------------------------------------------------|
|      15 | Various Units of India Tourism Development Corporation Limited |
|      16 | Hindustan Antibiotics Limited                                  |
|      17 | Bengal Chemicals & Pharmaceuticals Limited                     |

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

|   S.No. | Name of PSE                                     |
|---------|-------------------------------------------------|
|      18 | Hindustan Fluorocarbons Limited (subsidiary) ** |
|      19 | Scooters India Limited **                       |
|      20 | Bharat Pumps & Compressors Limited **           |

|   21. | Hindustan Prefab Limited                                       |
|-------|----------------------------------------------------------------|
|    22 | Units of Cement Corporation of India Limited (Nayagaon Unit) # |

# Transaction not feasible and the mines are being returned to the State Governments.

## 4. Transactions held up due to litigation

|   S.No. | Name of PSE                                     |
|---------|-------------------------------------------------|
|      23 | Karnataka Antibiotics & Pharmaceuticals Limited |

## 5. Under Corporate Insolvency Resolution Process (CIRP) in NCLT

|   S.No. | Name of PSE                                |
|---------|--------------------------------------------|
|      24 | Hindustan Newsprint Limited (subsidiary)** |

**  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.

## 6. Transactions not feasible.

|   S.No. | Name of PSE                             |
|---------|-----------------------------------------|
|      25 | Engineering Project (India ) Limited    |
|      26 | Bridge and Roof Company (India) Limited |

## 7. Transactions Completed

|   S.No. | Name of CPSE                                              |
|---------|-----------------------------------------------------------|
|      27 | Hindustan Petroleum Corporation Limited (HPCL)            |
|      28 | Rural Electrification Corporation Limited (REC)           |
|      29 | HSCC(India) Limited                                       |
|      30 | National Projects Construction Corporation Limited (NPCC) |
|      31 | Dredging Corporation of India Limited (DCIL)              |
|      32 | THDC India Limited (THDC)                                 |
|      33 | North Eastern Electric Power Corporation Limited (NEEPCO) |
|      34 | Kamrajar Port Limited                                     |
|      35 | Air India ^^                                              |
|      36 | Neelachal Ispat Nigam Limited (NINL)                      |

^^ Subsidiaries which are now with AIAHL are still to be divested