Centre to list 35 PSUs, targets Rs 1.5 lakh cr

The government is hoping to reap a bonanza from the disinvestment of public sector units (PSUs). The minister of state for heavy industry and public sector enterprises, Mr Arun Yadav, said on Wednesday that the government would list 35 public sector companies on the stock markets over the next five years.

This could help the government to get Rs 1.5 lakh crore. He said that the ministry is waiting for the finance ministry’s approval. “Once we get the nod from the finance ministry, we will start the process,” Mr Yadav said at the First Public Sector Enterprise Summit organised by CII.

Last year, the Cabinet had decided that government would divest its stake in all listed PSUs were its stake is more than 90 per cent.

In case of unlisted PSEs, which have made profits in the past three years, the Cabinet had decided to list them on the stock exchanges. According to an initial estimate, there could be some 60 PSEs that have to divest following this cabinet decision. There were 10 PSUs where government holding is more than 90 per cent and 50 unlisted PSUs with positive networth.

Last fiscal, the government raised Rs 25,000 crore from stake sale in Oil India, NMDC, REC and NTPC. This year the government has set a target to raise Rs 40,000 crore through the divestment process. The offers from the government to hit the markets this year are Coal India, SAIL, EIL and MMTC. “Some PSEs have outperformed the market and investors are indeed looking forward to listings by PSEs,” said Ms Usha Narayanan, executive director of Sebi.