The core group of secretaries on divestment reviewed the status of 31 public sector units (PSUs) which already has “in principle” approval from CCEA for strategic sale.

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CNBC-TV18 has learnt that the draft Expression of Interest (EoI) are ready for BPCL, CONCOR, NEEPCO and ready for approval by the cabinet secretary led panel. The panel has also suggested closure of Scooters India and Bharat Pump & Compressor and has asked the Ministry of Heavy Industries for a cabinet note on the same.

The Oil Ministry has been asked by the core group of secretaries on divestment to chalk out details of transferring subsidy on LPG and social schemes. It has also been asked to work out the cancellation of BPCL treasury shares of 9.33 percent.

The Department of Investment and Public Asset Management (DIPAM) has conducted roadshow In the United Kingdom, the United States of America, the United Arab Emirates, and Mumbai. It is expected that Saudi Aramco, ADNOC, Rosneft and Exxon Mobil have shown interest in BPCL buyout.

Roadshow for Container Corporation has also been held in Dubai, Singapore, Canada, and Mumbai. Ministry of Railways has been asked to resolve the issue of land leased by the ministry to Concor.

The core group has approved demerger of Nagarnar Steel Plant from NMDC and has asked the Ministry of Mines to allocate dedicated iron ore mine for the Nagarnar steel plant located in Chattisgarh before the strategic sale. Strategic sale of SAIL’s 3 units is delayed due to land issues in Bhadrawati and Salem, and the Steel Ministry has been asked to prepare a roadmap for the Durgapur Alloy Steel plant.

Draft EoI for NEEPCO is also under preparation and due diligence by NTPC on NEEPCO has been completed. DIPAM has prepared draft EoI for BEML strategic sale and also working on a proposal for asset monetisation.

The government has set a target of Rs 2.10 lakh crore under divestment for FY21. Since 2016, five strategic sale transactions are completed, seven are at different stages and 13 have either failed at EoI or bidding stage and the core group of secretaries has suggested closure of 4 PSUs.

First Published:Feb 11, 2020 1:52 PM IST