PSUs on sale: Modi govt is planning to sell its stake in 46 PSUs, decision on six expected soon

After it sells the government’s stake in profit-making public sector companies such as Bharat Petroleum Corporation Limited (BPCL), Shipping Corporation of India (SCI) and Container Corporation of India (CONCOR) etc as already announced, the Modi regime is planning to sell its stake in another 46 public sector companies, National Herald has learnt.

Out of these 46, the formal decision on selling the government’s stake in six PSUs is expected soon. There are more than 270 public sector undertakings in India.

As per sources, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has in principle agreed with the proposal forwarded by the finance ministry to sell its stake in six PSUs in the second phase of the disinvestment bid. However, a final decision has not been taken yet.

Sources privy to the development told NH that the list that has been sent to the CCEA for final approval includes Project and Development India Ltd, Hindustan Prefab Limited (HPL), Hospital Services Consultancy Ltd (HSCCL), National Project Construction Corporation (NPCC), Engineering Project (India) Ltd, Bridge and Roof Co. India Ltd, Pawan Hans Ltd, Hindustan Newsprint Ltd (subsidiary), Scooters India Limited, Hindustan Fluorocarbon Ltd. (HFL) (subsidiary) and Air India and its five subsidiaries.

Modi government believes that selling its stake in “ailing” PSUs will not only garner the required fund and technology to run these companies but will boost the investment drive also.

However, leader of the CPI-backed AITUC, Sukumar Damle thinks otherwise. He says this government, through media, is creating a perception against PSUs.

“The truth is that the number of loss-making public-sector companies are lesser than those that are making a profit. This whole drive of privatisation is to create a monopoly for certain business groups,” said Damle.

Based on current market prices, according to an estimate, the sale of a stake in these public sector companies may generate over ₹ One lakh crore for the Modi government.

On November 21, the government, in a major policy shift, has already approved the selling of its stake in profit-making public-sector companies, including BPCL.