Saturday, July 26, 2014

Government to sell stake in 4 PSUs

THE government on July 25 announced that it would be selling stake in four PSUs and publicly listing another as part of its disinvestment policy in order to shore up its finances, media reports said..
Finance minister Arun Jaitley said that...
the government plans to sell a five percent stake in state-run Steel Authority of India Ltd this fiscal year ending March.
The minister also said that the government has approved the sale of its residual stakes in Hindustan Zinc Ltd and Bharat Aluminium Co (BALCO).
The government owns 29.5 percent of Hindustan Zinc and 49 percent of BALCO. Both the companies are majority owned by London-listed Vedanta Resources.
In October, mining conglomerate Vedanta won the backing of its shareholders to offer up to $3.48 billion to buy the government's stakes in the companies.
The Finance Minister said that the government plans to sell a 10 percent stake in Hindustan Aeronautics Ltd (HAL) this fiscal year ending March.
The minister, who had earlier said that four public sector companies, which cannot be revived will be shut down and asked others to shape up to deal with free competition in an era when state-run firms had lost monopoly rights and preference, marking a clear shift in the Centre's policy vis-a-vis the PSUs, also said the government is planning a public listing of steel company Rashtriya Ispat Nigam Ltd and will sell a 10 percent stake this fiscal year ending March.

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