The Cabinet is likely to clear the plan to cut the government’s stake in around 20 Public Sector Undertaking (PSUs) on October 19, including several profit-making entities, restarting equity sale in public sector companies after a 12-year gap.
The companies identified apparently include the profitable Bharat Earth Movers, Certification Engineers International and others such as loss-making Scooters India. Also, there will be a detailed review of the plan to shed 10% stake in public sector general insurance companies, aimed at helping the insurers raise funds to take on private sector players. The aim of the policy is to ensure that these PSUs are run professionally and there is greater value in these entities, paving the way for the government to dilute its stake in the years.
The government think-tank NITI Aayog that firmed up the disinvestment policy for the government, had suggested strategic sale in several PSUs that would result in bringing down the Centre's share in these entities to under 50%. From a list of 74 loss-making companies identified by NITI Aayog, the government is looking to sell 22 companies, including BPCL, and is going to wind up several others.