Recapitalisation for PSU banks to be performance linked: Govt

GIVING a clear indication that government will be injecting more money into to the public sector lenders on the basis of their performance, Economic Affairs Secretary Shaktikanta Das has said every amount of tax payers' money given would be linked to their performance.
Admitting non-performing assets of banks as one of the challenges for the economy, he said, "The easier solution people have been talking about the problem of balance sheet of the banks, the problem of NPA is to provide more capital, inject more...

Govt pitches for merger of six consultancy firms into Engineers India

AFTER the finance minister in his budget speech talked about merger of couple of PSUs into a single entity, the government is now considering about the merger of about six PSU consultancy firms like Engineering Projects (India) Ltd with Engineers India Ltd (EIL) to create a mega consultancy firm that can take on the might of global giants like Bechtel.
There are close to a dozen PSUs that provide range of consultancy services — from education to EPC —— and there is a scope of merging some of them to create...

NHPC board to consider buyback option today

STATE-run hydro power generator NHPC Ltd’s board of directors may consider a proposal for buyback of shares at a meeting today. However, the PSU has not made it clear that whether it would buyback shares from its promoter, the central government holding 74.51 per cent of the equity or other shareholders.
At “board meeting scheduled on February 7, 2017…the board of directors may also consider the proposal for buyback of the fully paid-up equity shares of the company,” NHPC Ltd said.
The PSU did not disclose the quantum of amount it is looking...

‘Merged PSU energy giant to have global edge’

IN A big move, Finance Minister Arun Jaitley in his Budget speech proposed merger of state-run energy PSUs to create a behemoth to compete with the global counterparts. The move by finance minister aimed at creating an integrated oil behemoth, which could potentially top $100 billion in market value and enter the league of global oil heavyweights.
The will provide India the muscle to acquire assets abroad and negotiate better, but the business model of the new entity thus created will be...

Govt to begin strategic sale of three PSUs; to merge another four

AFTER Finance Minister Arun Jaitley spelling out government’s disinvestment policy, it is ready for strategic sale of stakes in three PSUs. These are Bharat Pumps & Compressors, Bridge & Roof Co and Hindustan Fluorocarbons. Government plans to sell its stake to strategic buyers.
The FM has also made it clear that PSUs will be merged for creating a stronger entity. Accordingly, the Finance Ministry wants to merge four PSUs -- Hindustan Prefab, Engineering Projects (India) Ltd, HSCC (India) Ltd and National Projects Construction Corporation -- with similarly-placed PSUs.
The government intends to divest 100 per cent equity in Bharat Pumps & Compressors Ltd through strategic...

Will government’s move to merge oil PSUs result in creation of oil giant?

UNION Finance Minister Arun Jaitley while presenting the General Budget announced something really big for the oil PSUs. “The Government will encourage strengthening the CPSEs through consolidation, mergers and acquisitions and soon create an integrated public sector ‘oil major’,” the Union Minister said.
Jaitley said the CPSEs will be integrated across the value chain of an industry through consolidation, mergers and acquisitions. “By these methods it will give them capacity to bear higher risks, avail economies...

Find out what FM says in budget about PSUs; Disinvestment target at Rs 72,500 crore; Rail PSUs to be listed

FM Jaitley arriving the Parliament House to table Union Budget 

WHILE presenting the General Budget 2017-18 in Lok Sabha on February 1, Union Finance Minister Arun Jaitley has said that the shares of Railway Public Sector Enterprises (PSEs) like IRCTC, IRFC and IRCON will be listed in stock exchanges. The government will encourage strengthening the CPSEs through consolidation, mergers and acquisitions and soon create an integrated public sector ‘oil major’, he added.
Easing the stressed legacy accounts of banks, Jaitley earmarked Rs. 10,000 crore...

Will FM make any big announcement for sick PSUs?

AS Finance Minister Arun Jaitley iz giving his final touches to the Budget documents, hopes soar for the PSUs, especially those that are battling to stay afloat. The public sector has tremendous hope pinned on the minister’s annual financial statement. One of the prime drivers of Indian economy, public sector contributes considerably for the overall growth of the economy. Post demonetization, with the PSU banks being flushed with plenty of hard cash, the FM might announce some big measures for the sector. Here are some issues where the sector can hope...

SBI bats for raising income tax exemption limits

SBI has called for raising various income tax exemption limits to boost economic growth. Presenting an agenda for the forthcoming Union Budget at a time when banks are flushed with funds post-demonetisation, the largest lender has said in a report, "We expect an increase in personal income tax exemption limit from Rs 2.5 lakh to Rs 3.0 lakh, increase in Section 80C exemption limit from current Rs 1.5 lakh to Rs 2 lakh, interest exemption on housing loan from Rs 2 lakh to Rs 3 lakh and at least...

7th Pay Commission: Cabinet likely Okay panel’s recommendation today

THE Union Cabinet is likely to take up today the Empowered Committee of Secretaries’ report on the 7th Pay Commission.
The Cabinet is likely to put its stamp of approval on higher increase in basic pay than the nearly 15 per cent recommended by the 7th Pay Commission for over 1 crore government employees and pensioners, say media reports. Tens of thousands of employees...

Seventh Pay Commission’s pay hike budgeted for in ministry allocations: Centre

GIVING an answer as to how the government will deal with the huge financial burden resulting out of the implementation of the Seventh Pay Commission awards for the Central government employees, the government on March 2 said the pay hike has been built in as interim allocation for different ministries and Budget numbers were credible.
This follows due to absence..

What does Union Budget have for PSUs?

FM Jaitley 

RURAL economy and infrastructure were his main focus areas when Finance Minister presented the Union Budget for 2016-17, his third as the Finance Minister. The PSUs that had lot of expectations from the minister were not happy though they found reference in the annual financial document. Here are some key features outlined...

Can ex-CAG chief Vinod Rai-led Bank Board Bureau fix PSU banks?

Vinod Rai

JUST a day before the presentation of the Budget for 2016-17, Prime Minister Narendra Modi approved the constitution of the Bank Board Bureau, which will seek to reform the appointment process for top-level posts and improve governance in public sector banks. The new board will be headed by
Vinod Rai, former...

What PSUs can expect from Union budget

AS FINANCE Minister Arun Jaitley is giving his final touches to Annual Union Budget, the public sector has tremendous hope pinned on the minister’s annual financial statement. One of the prime drivers of Indian economy, public sector contributes considerably for the overall growth of the economy. With the economy growing over seven percent annually, it is incumbent on the government to spell out some concrete measures...

LIC pushes for a pension insurance scheme that lapses on August 14, 2015

STATE-run Life Insurance Corporation of India (LIC) has been aggressively marketing a pension scheme that found its mention in 2014-15 Budget as announced by union finance minister Arun Jaitley after the NDA government had come to power last year. The sense of urgency has come as the scheme called...

State-owned oil majors to pump Rs 76k cr on project expansion

GIVING a major push towards expansion, public sector oil companies including Oil and Natural Gas Corp (ONGC) will pump in over Rs 76,565 crore on the project expansion during 2015-16, up 5 per cent over the previous fiscal.
ONGC, the Maharatna PSU and the nation's most profitable company, will see its capital expenditure rise to Rs 36,249.37 crore as compared with Rs 34,813 crore...

Five things the PSUs may expect from Union Budget 2015-16

Finance minister Jaitley 

AS the finance minister Arun Jaitley is set to unveil his annual budget for 2015-16 to be presented on February 26, hopes are high among the PSUs. There are expectations and hopes from the finance minister in the backdrop of the...

Union Budget 2014-15: Disinvestment target revised upwards to Rs 58,425 cr

FM Jaitley

PRESENTING the maiden budget of the Narendra Modi-led NDA government, Finance Minister Arun Jaitley on July 10 raised the disinvestment target for the current fiscal to Rs 58,425 crore. This includes Rs 43,425 crore from divesting stake in PSUs and another Rs 15,000 crore from sale of residual stake in the erstwhile government companies, as per the Budget document. This amount is higher than the Rs 51,925 crore PSU stake sale target estimated in the interim budget presented...

Will NDA government outline steps for privatising PSUs in the Union Budget?

AS THE NDA government is going to present its maiden budget after the comprehensive victory in the Parliamentary elections, hopes and expectations are high among the masses and the corporate houses for a growth-oriented financial statement reflecting the Government's commitment for prosperity. But what the public sector undertakings can hope from the Modi sarkar?
Two aspects relating to this sector are likely to be addressed in this Budget. The first is availability of coal with some focus on the private sector participating...