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Centre Finds Route to Raise Funds, Cabinet Approves Seven PSU Listings

The broader National Stock Exchange (NSE) Nifty also slumped 230.35 points. (Credit: Reuters)

The broader National Stock Exchange (NSE) Nifty also slumped 230.35 points. (Credit: Reuters)

The government has set a disinvestment target of Rs 800 billion this fiscal year, but in the first half it managed to mop up a little over 10 per cent.

New Delhi: The government on Friday said six public sector undertakings, including THDCIL, TCIL and RailTel, will come out with IPOs, while KIOCIL will issue follow on public offer (FPO).

The Cabinet Committee on Economic Affairs has given approval to list seven CPSE on the stock exchange through initial public offer (IPO)/FPO, Law Minister Ravi Shankar Prasad said while briefing the media.

The CCEA in its meeting held on Thursday decided that six PSUs will go in for IPO and one for FPO.

The six firms to come up with IPOs are — Telecommunication Consultants (India) Ltd (TCIL), RailTel Corporation India Ltd, National Seed Corporation India Ltd (NSC), Tehri Hydro Development Corporation Ltd (THDCIL), Water & Power Consultancy Services (India) Ltd (WAPCOS) and FCI Aravali Gypsum and Minerals (India) Ltd (FAGMIL).

While, Kudremukh Iron Ore Company (KIOCL) will come up with FPO. "Listing will help the PSUs to unclock potential and value," Prasad said.

The government has set a disinvestment target of Rs 800 billion this fiscal year, but in the first half it managed to mop up a little over 10 per cent.

At a meeting in NITI Aayog December, 2016, the idea of pushing state-run firms to list was discussed with the finance ministry and other key stakeholders. It was a reform initiative to make the PSUs more accountable and also help the government raise money through disinvestment.

Along with the 1990 reforms, the government began the process of listing public sector companies. After a rush in the 1990s, there was a pause before the Atal Bihari Vajpayee government unlocked value in several state-owned firms, while others such as Maruti were listed at the time of strategic sale by the Centre.

The UPA made a fresh start with listing of companies such as Coal India, but there was a lull since 2011-12.

first published:December 28, 2018, 16:43 IST