News-Government Plans to sell 250 companies.



News-Government Plans to sell 250 companies.


Government Plans to sell 250 companies, PSU (Public Sector Undertaking) will remain in some Sectors.

Introduction.

According to the disinvestment plan, the government can sell or close its entire stake in the rest, leaving about two dozen government companies or make them a subsidiary in the top two. Finance Minister Nirmala Sitharaman has announced a plan to raise Rs 1,75,000 crore by selling her stake in several PSUs, including two public sector banks and an insurance company, in Budget 2021-22. The Center had a total of 249 companies in working condition till March 31, 2019, which it can reduce to about two dozen.

The government will have a limited presence in four core sectors.

To decide which type of government will reduce or sell its stake in public sector units, they are divided into two categories of core and non-core sectors. The core sectors in which the government will maintain its minimum presence are divided into four groups and the first is Atomic Energy, Space, and Defence. The second group is transport and telecommunications and the third is power, petroleum, coal, and other mineral companies. The fourth group consists of banking, insurance, and financial services companies.

Space corporation can remain government.

https://www.millionsbusiness.com/2021/02/indian-union-budget-2021.html

In such a situation, it becomes clear to an extent that the PSU tag of only the top two companies in each sector can remain. Nuclear Power Corporation of India, Space Corporation, and Power Grid may remain on the list of these companies.

BHEL's PSU tag may remain.

The government may dilute its stake in sector heavyweights like Bharat Heavy Electricals (BHEL), a company in the heavy and medium engineering sector, but its PSU tag may remain. The big thing with BHEL is that being a sector-owned domestic company, it can continue to ensure affordable electricity for consumers and play a key role in the Make in India campaign.

The power grid can remain in the power sector.

As far as banking, insurance, and financial sectors are concerned, in addition to SBI, the PSU tag of anyone in PNB or Bank of Baroda can remain and LIC can also hold a large stake in the government for a long time. The general insurance company may include the New India Assurance Company, which sells products such as motor, health, travel, home insurance, rural insurance.

The government may reduce shares in Alloy Corporation.

In the oil and gas space, apart from Indian Oil and ONGC, the government may reduce its stake in Coal India and Coal Company Mishra Dhatu Nigam Limited in the coal sector, but they can remain in control. In the power sector strategic companies, NTPC and Power Grid while BSNL PSUs can remain in telecommunications.

In 2021-22, they will become private, will come to IPO of LIC.

The companies that the government is going to privatize in the new financial year include Bharat Petroleum, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, Bharat Earth Movers Limited, and Pawan Hans. The Finance Minister has said that LIC's IPO will usher in a new financial year.

https://www.millionsbusiness.com/2021/01/9-indian-companies-will-present-their.html


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