THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI ARJUN RAM MEGHWAL)
(a) & (c): The total amount realized through disinvestment of Central Public Sector Enterprises (CPSEs) during 2014-15 and 2015-16 was Rs. 24,349 crore and Rs. 23,997 crore respectively. The Revised Estimate (RE) for disinvestment during 2016-17 is Rs. 45,500 crore, comprising Rs. 40,000 crore from CPSEs’ disinvestment and Rs. 5,500 crore from strategic disinvestment.
As a part of the strategy to keep shares readily available for transaction to take advantage of market conditions without any loss of time, the Government has identified some CPSEs for minority stake sale in sectors like mineral & metal, oil, capital goods as well as some mid-size and small stocks.
Government has given ‘in-principle’ approval for strategic disinvestment of some CPSEs, Units of CPSEs and subsidiaries of CPSEs. However, after completion of the process, specific approval of Government will be sought in each case.
The details of equity disinvested in CPSEs and GoI’s shareholding post-disinvestment during last two years are as follows:
Financial Year 2014-15
Sl. No. CPSEs Method of Disinvestment % of GoI’s shares disinvested % of GoI’s Shareholding Post Disinvestment
1 Steel Authority of India Ltd. (SAIL) OFS 5 75
2 Coal India Ltd.(CIL) OFS 10 78.65
3 National Fertilizers Ltd. (NFL) Employees’ OFS 0.29 89.71
4 National Thermal Power Ltd. (NTPC) Employees’ OFS 0.04 74.96
5 Metals and Minerals Trading Corporation of India (MMTC) Employees’ OFS 0.073 89.9268
6 Hindustan Copper Ltd. (HCL) Employees’ OFS 0.05164 89.95
7 National Aluminium Company Ltd. (NALCO) Employees’ OFS 0.13 80.93
8 National Mineral Development Corporation (NMDC) Employees’ OFS 0.00 80.00
Financial Year 2015-16
Sl. No. CPSEs Method of Disinvestment % of GoI’s shares disinvested % of GoI’s Shareholding Post Disinvestment
1 Rural Electrification Corporation Ltd. (REC) OFS 5 60.64
2 Power Finance Corporation Ltd. (PFC) OFS 5 67.80
3 Dredging Corporation of India Ltd.(DCIL) OFS 5 73.56
4 Indian Oil Corporation Ltd. (IOC) OFS 10 58.57
5 Engineers India Ltd. (EIL) OFS 10 59.37
6 National Thermal Power Ltd. (NTPC) OFS 5 69.96
7 Container Corporation of India Ltd. (CONCOR) OFS 5 56.80
8 Bharat Dynamics Ltd. (BDL) Buyback NA NA
9 Hindustan Aeronautics Ltd. (HAL) Buyback NA NA
The receipts from the disinvestment are credited in the National Investment Fund (NIF), a ‘public account’ and are used for the following approved purposes:
(i) Subscribing to shares being issued by the CPSEs including PSBs and Public Sector Insurance Companies, on rights basis so as to ensure 51% ownership of the Government in those CPSEs/PSBs/Insurance Companies, is not diluted;
(ii) Preference allotment of shares of the CPSE to promoters as per SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 so that Government shareholding does not go down below 51% in all cases where the CPSE is going to raise fresh equity to meet its Capex programme;
(iii) Recapitalization of public sector banks and public sector insurance companies;
(iv) Investment by Government in RRBs/IIFCL/NABARD/Exim Bank;
(v) Equity infusion in various Metro projects;
(vi) Investment in Bhartiya Nabhikiya Vidyut Nigam Limited and Uranium Corporation of India Ltd;
(vii) Investment in Indian Railways towards capital expenditure.
(b): The total net profit and contributions in terms of duties and dividends, total asset value and cash & bank balance of all CPSEs in the last two years are as under:
(Rs. in crore)
Details 2014-15 2015-16
Total Net Profit 102866 115767
Excise & Custom Duties 86985 149553
Dividend 38166 43726
Total Asset Value 3004115 3180644
Cash & Bank Balance 254988 243478
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