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BPCL, SCI correct after Cabinet OKs disinvestment of 5 CPSEs

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Capital Market
Last Updated : Nov 21 2019 | 11:04 AM IST

Finance Minister Nirmala Sitharaman on Wednesday approved the sale of government's stake in five central public sector enterprises.

BPCL was down 2.08% at Rs 533.30. Shipping Corporation of India was down 3.29% at Rs 66.10. Container Corporation of India was up 0.67% at Rs 581.85.

The S&P BSE Sensex was down 11.65 points, or 0.03% at 40,639.99.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi on Wednesday accorded 'in-principle' approval for strategic disinvestment in select central public sector enterprises (CPSEs).

The government will sell its 53.29% stake in Bharat Petroleum Corporation (BPCL) after taking out Numaligarh refinery from its portfolio. The government will also sell 63.75% stake in Shipping Corporation of India (SCI), and a 30.8% stake sale in Container Corporation of India. Besides, the government will divest its stake in THDC India and North Eastern Electric Power Corporation (NEEPCO) to state-owned NTPC.

The cabinet has also approved cutting government's stake in select PSUs below 51% while retaining management control.

The resources unlocked by the strategic disinvestment of these CPSEs would be used to finance the social sector/developmental programmes of the government benefiting the public. The unlocked resources would form part of the budget and the usage would come to scrutiny of the public. It is expected that the strategic buyer/ acquirer may bring in new management/technology/investment for the growth of these companies and may use innovative methods for their development.

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First Published: Nov 21 2019 | 9:42 AM IST

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