Disinvestment can only be a short-term measure in plugging the widening fiscal gap Privatisation is now rising high on Modi government’s economic agenda as it plans to sell its stake in blue chip companies like BPCL and multimodal logistics giant CONCOR. Recently, Central government kicked off its disinvestment plan by giving in-principle approval for strategic disinvestment in five public sector enterprises- Bharat Petroleum Corporation Ltd (BPCL); Shipping Corporation of India; Container Corporation of India (Concor); Tehri Hydro Power Development Corporation (THDCIL), and North Eastern Electric Power Corporation Ltd (NEEPCO), along with its management control. Further, government is also eyeing on complete sell-off of its national carrier, Air India. Under its future disinvestment proposal, the Cabinet Committee on Economic Affairs (CCEA) has given clearance to the reduction of government’s stake in select public sector units to 51 percent, “while retaining management control on c...
A blog about challenges and opportunities in Indian economy