CPSES: In-prin­ci­ple nod to strate­gic dis­in­vest­ment

Governance Now - - HILL STATION BLUES -

As part of the strat­egy to keep shares read­ily avail­able for trans­ac­tion to take ad­van­tage of the mar­ket con­di­tions, the cen­tre has iden­ti­fied sev­eral cpses, in­clud­ing those in West Ben­gal, for mi­nor­ity stake sale in min­eral & metal, oil & en­ergy, cap­i­tal goods sec­tors and some mid-size and small stocks.

min­is­ter of state for fi­nance Pon ra­dha­krish­nan in­formed the par­lia­ment that the gov­ern­ment has given in-prin­ci­ple ap­proval for strate­gic dis­in­vest­ment of 24 cpses/units of cpses. They in­clude Bridge & roof com­pany (In­dia) ltd. af­ter com­ple­tion of the process, spe­cific ap­proval of the gov­ern­ment will be sought in each case.

Dis­in­vest­ment of the gov­ern­ment’s share­hold­ing is un­der­taken to un­lock the true value of com­pany, pro­mote public own­er­ship and higher de­gree of ac­count­abil­ity.

Through strate­gic divest­ment, the gov­ern­ment ex­pects the buyer to bring in funds and tech­nol­ogy for the op­ti­mum de­vel­op­ment of busi­ness po­ten­tial and growth of the Psus. Post strate­gic dis­in­vest­ment, the growth in com­pa­nies would be able to gen­er­ate higher eco­nomic ac­tiv­ity.

The terms and con­di­tions of the strate­gic sale ad­dress em­ploy­ees’ con­cerns.

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