"The total realization of Rs. 21,432.38 crore, by end-November 2016 through CPSEs' disinvestment receipts, constitutes around 59.53 per cent of the budgeted target of Rs. 36,000 crore (CPSEs' disinvestment)," a Finance Ministry release said.
"During the current financial year 2016-17, the government has so far...
realized Rs. 23,528.73 crore, which includes Rs. 21,432.38 crore through minority stake sale in 14 CPSEs and Rs. 2096.35 crore through strategic disinvestment," which involves reducing government shareholding in the company to below 50 per cent, transferring, thereby, management control, the statement said.
The disinvestment target for the current financial year has been estimated at Rs. 56,500 crore, comprising Rs. 36,000 crore from disinvestment of CPSEs and Rs. 20,500 crore from strategic disinvestment.
Earlier in October last year, the union cabinet gave in-principle approval to a proposal mooted by the NITI Aayog for strategic sale in public sector undertakings, including those that are making profits.
During 2015-16, the government could manage to meet less than half the budget estimates of divestment at Rs. 25,312 crore, as against the target of Rs. 69,500 crore.
The major divestments during the ongoing fiscal include the 15 per cent stake in National Buildings Construction Corp, which realised over Rs. 2201 crore, the NHPC offer of sale (OFS) that yielded more than Rs.2,717 crore, NMDC buyback realising over Rs. 7,519 crore and the buyback of shares by Coal India that earned the government Rs. 2638.24 crore.
Here are the details of amount received by the government via disinvestment:
NHPC offer for sale
CCEA in its meeting held on September 10, 2014 approved 11.36 percent disinvestment in NHPC out of government shareholding of 85.96 percent, through an OFS. The OFS took place on April 27- 28, 2016. The government realised Rs 2,716.55 crore via NHPC stake sale.
Manganese Ore (India) Limited buyback
The MOIL buyback offer opened on September 19, 2016 and closed on September 30, 2016. The government realised an amount of Rs 793.87 crore.
National Mineral Development Corporation buyback
The NMDC buyback offer opened on September 19, 2016 and closed on September 30, 2016. The Government realised an amount of Rs 7,519.15 crore.
The Alternative Mechanism in its meeting held on 05.08.2016 approved participation of Government in Buyback of shares by BEL. The BEL buyback offer opened on 06.10.2016 and closed on 21.10.2016. The Government realised an amount of Rs.1,802.60 crore.
NTPC Employee OFS
NTPC Employee OFS was opened on June 27, 2016 and closed on July 7, 2016. The Government realised an amount of Rs 203.78 crore.
NHPC Employee OFS
NHPC Employee OFS was opened on November 4, 2016 and closed on November 11, 2016. The Government realised an amount of Rs 21.27 crore.
DCIL Employee OFS
DCIL Employee OFS was opened on October 31, 2016 and closed on November 15, 2016. The Government realised an amount of Rs 0.93 crore.
CCEA in its meeting held on February 19, 2015 approved disinvestment of 10% paid up equity of National Aluminium Co. Ltd (NALCO) out of government’s shareholding of 80.93% through OFS.
Buyback of shares by NALCO
Board of NALCO in its meeting held on May 25, 2016 recommended buyback of fully paid equity shares not exceeding 64,43,09,628 (of face value Rs. 5 each) at price of Rs 44/- per share. Government also participated in said buyback. Government received an amount of Rs 2831.71 crore and its shareholding came down to 74.57%, from 80.93% prior to buyback.
CCEA in its meeting held on May 13, 2015 had approved disinvestment of 15% paid-up equity of Hindustan Copper Ltd (HCL) out of government’s shareholding of 89.95% through OFS.
In first tranche, disinvestment of seven percent paid-up equity capital of HCL through OFS method was held on September 29-30, 2016. A total number of 6,47,65,260 equity shares were offered for sale at floor price of Rs 62/- per share. The issue was over-subscribed and government received an amount of Rs 399.93 crores as disinvestment proceeds from the said transaction.
Buyback of shares by CIL
The Board of Coal India Limited in its meeting held on July 11, 2016 recommended buyback of fully paid equity shares not exceeding 10,89,55,223 ( Face value Rs. 10) at Rs. 335/- per equity share. GoI participated in said buyback. On this account, government received an amount of Rs 2638.24 crore. Post buyback, the government's shareholding in CIL slightly increased to 79.78% from 79.65% prior to buyback.
CONCOR Employees OFS
Government has received an amount of Rs 9.34 crore on account of transfer of shares to the employees of CONCOR held in September, 2016 post OFS of the company.
IOCL Employees OFS
Government has received an amount of Rs 262 crore on account of transfer of shares to the employees of IOCL held in May, 2016 post OFS of the Company.
OFS of 15 percent Government of India shareholding in NBCC was launched on October 20, and completed on October 21, 2016. The OFS's sale proceeds was Rs 2201.14 crore.
Disinvestment of SUUTI holdings
1,48,23,702 shares of Larsen & Toubro Ltd (1.62% of the equity capital of the company) was sold out of SUUTI's strategic shareholding by bulk trades on November 4, 2016. Government received an amount of Rs 2096,34,65,993/- from this sale. Strategic holding of SUUTI comprise shares of Axis Bank, ITC Ltd. and L&T shares.