The Cabinet Committee on Economic Affairs (CCEA) today approved the constitution of a National Investment Fund. The broad objective will be to make investment in social sector projects which promote education, health care and employment; and capital investment in selected profitable PSEs that yield adequate returns, in order to enlarge their capital base to finance expansion/diversification.
CCEA today also gave its in principle approval for listing of currently unlisted profitable Public Sector Enterprises (PSES) each with a net worth in excess of Rs.200 crores, through an IPO, either in conjunction with a fresh equity issue by the PSE concerned or independently by the Government, on a case by case basis, subject to the residual equity of the Government remaining at least 51 per cent and the Government retaining management control of the PSE. It also approved for the sale of minority shareholding of the Government in listed, profitable PSEs either in conjunction with a Public Issue of fresh equity by the PSE concerned or independently by the Government, subject to the residual equity of the Government remaining at least 51 per cent and the Government retaining management control of the PSE.
A detailed company wise programme will be prepared in consultation with the concerned administrative Ministry identifying the quantity of shares as well as the likely timing of the offer for sale/Initial Public Offer (IPO). Priority would be given to those PSEs which, autonomously, intend to approach the capital market for issue of fresh equity. Firm proposals for the disinvestments of a small part of the shareholding in specific PSEs, after due consultation with the administrative Ministries/Departments will again be put up to CCEA for approval and following such approval, to the GoM for deciding the price band and the final price.
(Release ID :6769)