Cab­i­net okays sale of govt’s 52.63% stake in REC to PFC

Financial Chronicle - - MISCELLANY - FC BU­REAU

THE Cab­i­net Com­mit­tee on Eco­nomic Af­fairs on Thurs­day ap­proved the sale of the gov­ern­ment’s 52.63 per cent stake in REC Ltd to Power Fi­nance Cor­po­ra­tion (PFC). The gov­ern­ment is ex­pected to garner around Rs 15,000 crore from this merger.

“The CCEA gave in prin­ci­ple ap­proval for strate­gic sale of the Gov­ern­ment of In­dia’s ex­ist­ing 52.63 per cent of to­tal paid up eq­uity share­hold­ing in REC Ltd to Power Fi­nance Cor­po­ra­tion along with trans­fer of man­age­ment con­trol,” Fi­nance min­is­ter Arun Jait­ley said at a press con­fer­ence after the Cab­i­net meet­ing here.

The gov­ern­ment held 57.99 per cent stake in REC, and 65.64 per cent in PFC at Septem­ber-end. How­ever, the gov­ern­ment hold­ing in REC came down to 52.63 per cent fol­low­ing stake sale through ETF.

Jait­ley also said he had talked about the merger of pub­lic sec­tor un­der­tak­ings work­ing in the same space in the bud­get for 2017-18.

In his bud­get speech, he had said there were op­por­tu­ni­ties to strengthen CPSEs through con­sol­i­da­tion, merg­ers and ac­qui­si­tions. “By these meth­ods, CPSEs can be in­te­grated across the value chain of an in­dus­try. It will give them ca­pac­ity to bear higher risks, avail economies of scale, take higher in­vest­ment de­ci­sions and cre­ate more value for the stake­hold­ers,” he had said.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.