Govt planning IPOs for two rail PSUs by March-end to meet divestment target

The government is likely to divest 10% each in RVNL and IRFC

The government is planning initial public offerings (IPOs) of equity for two railway subsidiaries, Indian Railway Finance Corporation (IRFC) and Rail Vikas Nigam (RVNL), this financial year, in an effort to meet its disinvestment target of Rs 800 billion for 2018-19.

With the addressing of IRFC’s earlier tax issues, a senior official with the Department of Investment and Public Asset Management (Dipam) told Business Standard that the plan was to also list it and RVNL on the bourses in the January-March quarter.

In February, the Ministry of Corporate Affairs had waived an accumulated Rs 63.92 billion in deferred tax liability for IRFC.