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Cabinet approves sale of Govt stake in five CPSEs including BPCL

Cabinet approves sale of Govt stake in five CPSEs including BPCL

The government has also approved to bring down the stake in selected public sector companies to below than 51 per cent.

Nov 21, 2019 10:03 IST

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The central government took a major step towards privatization on November 20, 2019. The Union Cabinet approved the sale of government’s stake in Bharat Petroleum Corporation Limited (BPCL), Shipping Corporation of India (SCI) and freight-linked container corporation of India (CONCAR).

The government has also approved to bring down the stake of government in selected public sector companies to below than 51 per cent. Finance Minister Nirmala Sitharaman told the media that the Numaligarh refinery will be separated from BPCL, the country’s second-largest refinery company. The decision was taken after the Cabinet Committee on Economic Affairs (CCEA) meeting.

Five Central Public Sector Enterprises (CPSEs)

The government has taken this decision after approval of CCEA. These companies are – Tehri Hydro Development Corporation India Limited (THDC), Bharat Petroleum Corporation Limited (BPCL), North Eastern Electric Power Corporation Limited (NEEPCO), Shipping Corporation of India (SCI) and Container Corporation of India (CONCOR).

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Key Highlights

• The central government has decided to the sale of its 53.29 per cent stake in BPCL.
• The cabinet also approved the sale of the government’s entire 63.75 per cent stake in Shipping Corporation of India (SCI) and 30.9 per cent stake in Container Corporation of India. The government currently holds a 54.80 per cent stake in CONCAR.
• She has also declared that the government’s stake in Tehri Hydro Development Corporation India Limited and North Eastern Electric Power Corporation Ltd. (NEEPCO) will be sold to Public Sector NTPC Ltd.
• It was also approved to reduce government stake to below 51 per cent in select PSUs like Indian Oil Corporation (IOC).

Numaligarh Refinery

The Finance Minister said that the government will do strategic disinvestment in BPCL. She has also made it clear that the government will not sell a part of BPCL to Numaligarh Refinery (NRL) in Assam. The government will keep its stake in the refinery but BPCL will have full management control transfer.

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