Govt in­vites bids for strate­gic divest­ment of 4 PSUs

Business Standard - - ECONOMY & FINANCE - PRESS TRUST OF IN­DIA

The govern­ment has in­vited bids from cen­tral pub­lic sec­tor en­ter­prises (CPSEs) for buy­ing its en­tire share­hold­ing in con­sul­tancy firms, Na­tional Projects Construction Cor­po­ra­tion (NPCC), Hospi­tal Ser­vices Con­sul­tancy Cor­po­ra­tion (HSCC), and En­gi­neer­ing Projects (In­dia) (EPI), as it looks to bring all ad­vi­sory busi­ness un­der one out­fit. Be­sides, the govern­ment wants to sell its 99.35 per cent stake in Kolkata-based construction com­pany Bridge & Roof Co, which is un­der the con­trol of the Heavy In­dus­tries Min­istry. The govern­ment wants to sell its en­tire 98.99 per cent stake in NPCC and 100 per cent each in HSCC and EPI, but only to Cen­tral PSUs, ac­cord­ing to a no­tice invit­ing bids.

The stake sale move is in line with the an­nounce­ment Fi­nance Min­is­ter Arun Jait­ley made in his Bud­get for 2017-18, out­lin­ing the de­sire to merge PSUs to cre­ate large state-owned firms.

The bids for NPCC, HSCC and EPI have to be put in by Novem­ber 8, while that for Bridge & Roof Co it is De­cem­ber 11.“The govern­ment has ‘in-prin­ci­ple’ de­cided to dis­in­vest its en­tire eq­uity share­hold­ing in NPCC along with trans­fer of man­age­ment con­trol through a com­pet­i­tive bid­ding process by way of ac­qui­si­tion by a sim­i­larly placed CPSE through sale of eq­uity shares,” the Depart­ment of In­vest­ment and Pub­lic As­set Man­age­ment said while invit­ing bids. Un­der the ad­min­is­tra­tive con­trol of the Min­istry of Water Re­sources, NPCC is pri­mar­ily en­gaged in project man­age­ment con­sul­tancy ser­vices for civil construction projects and civil in­fra­struc­ture for ther­mal and hy­dro elec­tric projects in In­dia.

HSCC, un­der the Min­istry of Health and Fam­ily Wel­fare, is en­gaged in the pro­vi­sion of con­sul­tancy ser­vices in health- care and other so­cial sec­tors in In­dia and abroad.

The govern­ment will also trans­fer man­age­ment con­trol through a com­pet­i­tive bid­ding process by way of sale EPI stake to a sim­i­larly placed CPSE.

In the cur­rent fis­cal, the govern­ment plans to raise ~15,000 crore through strate­gic sale of PSUs.

In the cur­rent fi­nan­cial year, the govern­ment plans to raise ~15,000 crore via strate­gic sale of PSUs

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