As per media reports, NITI Aayog has held a preliminary meeting to select the next batch of public sector enterprises for strategic sale and disinvestment, and to determine which companies and assets are non-strategic in nature and can be pushed for sale in the next round. Different ministries would recommend names of the public enterprises that can be considered for sale.
The NITI Aayog is also working on the nature and extent of these new batch of disinvestment on a case to case basis. The government could opt for strategic deal, disinvestments with sale of minority stake, monetisation of certain assets or even share buyback. The details will be worked out later.
If reports appearing in the media are to be believed, the Modi government plans to completely exit non-strategic sectors through privatisation or strategic disinvestment. It aims to retain only a few public-sector units in strategic sectors that might include defence, banking and insurance, petroleum, steel and fertilisers. The Centre aims to raise Rs 1.2 lakh crore in the current fiscal through strategic sale. Rs 90,000 crore from disinvestment of stake in PSBs is also part of this year’s goal, taking the total to Rs 2.1 lakh crore.
This will be second round of disinvestment. In the first round, NITI Aayog had recommended 48 companies including Air India, and some assets of NTPC and Steel Authority of India. The first round has gained momentum with the Department of Investment and Public Asset Management (DIPAM) pushing the sale of Bharat Petroleum Corporation, Shipping Corporation, BEML and Container Corporation of India .
