The government is weighing a minority stake sale in about five public sector undertakings (PSUs) through offer-for-sale (OFS). The five PSUs under consideration fall under the ministries for railways, mines and fertilisers, a senior government official said.
“Market conditions are good for OFS. The Department of Investment and Public Asset Management (DIPAM) is planning OFS in two railway PSUs, likely RITES and Rail Vikas Nigam Limited (RVNL). OFS in a mines ministry PSU is also in the plan,” the official confirmed to Moneycontrol.
The two fertiliser PSUs on the government radar for OFS this fiscal are Rashtriya Chemicals & Fertilizers Limited (RCF) and National Fertilizers Limited (NFL). "The offers will be spaced out properly," he said.
The Union Budget for 2023-24 has set a target of Rs 51,000 crore for disinvestment in PSUs. DIPAM started toying with the idea of the fresh offers for sale since strategic sales were not moving at a great speed. The government recently offloaded 3 percent stake in Coal India through OFS.
RITES, the export arm of the Indian Railways, provides rolling stock. It recently signed agreements with the National Railways of Zimbabwe for the supply of 3,000 HP diesel-electric locomotives and high-sided open wagons, estimated at $81,175,500 or Rs 664 crore.
RVNL works as the construction arm of the Ministry of Railways for project implementation and transportation infrastructure development. It recently bagged a Rs 808-crore contract from the National Highways Authority of India (NHAI) for rehabilitation and upgrade of the Chandikhole-Paradip Section of NH-53 in Odisha from four to eight lanes.
The mines ministry has Nalco, Hindustan Copper as major PSUs under it.
The OFS for 10 percent stake sale in RCF and 20 percent in NFL is also likely soon and may happen in Q2, another person aware of the development told Moneycontrol. The government had identified eight fertiliser PSUs, including RCF and NFL, for strategic disinvestment in 2022, which has been hanging fire.
First Published: Jul 11, 2023 10:37 AM IST
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