Selloff process gathers steam

The government's disinvestment plan in non-navratna and loss-making public sector companies is gathering steam.

Shipping, Road Transport and Highways Minister TR Baalu today said his ministry had agreed to a proposal to sell the government's 15 per cent stake in Shipping Corporation of India (SCI) through a public offer after a stock split which would see each share of Rs 10 converted into shares of Rs 5.

After the proposed public offer, the government's holding in SCI will fall to 65.12 per cent from 80.1 per cent at present. Baalu told reporters at the Economic Editors' Conference here that 10 per cent of the issue would be reserved for employees.

A committee of secretaries looking into the recommendations of the Board for Restructuring of Public Sector Enterprises suggested yesterday that joint venture partners be roped in for loss-making Nepa and Richardson Crudas.

Selling seven units of Cement Corporation of India and reviving three others were proposals also being considered, officials present at the conference said.

The proceeds from the sale of stakes in these PSUs will be used for their rehabilitation. "It is like 'streedhan' which will be used for the benefit of the PSU family," said an official.

For Bharat Pumps & Compressors and Braithwaite, the government has decided to infuse additional capital and help in their restructuring.

The finance ministry is in the process of identifying around 20 non-navratna PSUs where the government can sell its shares through a public offer.

"We intend to start the process for the sale of shares in at least half-a-dozen companies by the end of the financial year," an official in the ministry said.

The government has already started the process for the sale of its 8 per cent stake in Maruti Udyog, a move expected to fetch around Rs 2,000 crore. The government is also committed to selling its 44 per cent stake in Balco to Sterlite Industries.

The disinvestment department has also proposed a reduction in the government's holding in Nalco.

To help the reforms initiative gather speed, the civil aviation ministry is planning public offers for Indian Airlines and Air India, while the power ministry is willing to sell the government's holding in Power Finance Corporation.