The Hindu : Govt. mops up Rs. 8661 cr. from PSEs sale

Online edition of India's National Newspaper
Thursday, Jan 02, 2003

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Business

Govt. mops up Rs. 8661 cr. from PSEs sale

NEW DELHI JAN. 1. Despite constant opposition to disinvestment from various sections, as many as 25 public sector enterprises were divested during 2002 with realisations touching an impressive Rs. 8,661.33 crores.

Apart from this, a sum of Rs. 1,442.18 crores is expected to be realised, an official release said here.

During the calendar year 2002, the Government disinvested its equity in 25 PSEs, including IBP, telecom major Videsh Sanchar Nigam Ltd., petrochemical company IPCL, auto giant Maruti Udyog, and Hindustan Zinc taking the realisation to Rs. 8,661.33 crores that includes dividend and dividend tax.

The Government has so far disinvested equity in 34 units since creation of the Disinvestment Ministry in 1999.

In terms of realisation, this year's proceeds are significant when seen in the backdrop of total realisation of Rs. 11,300 crores during the past three years.

Other PSEs that were disinvested in 2002 mostly included the hotel properties of ITDC and HCI, at Madurai, Udaipur, Mamallapuram, Qutub Hotel (Delhi), Centaur and Juhu Beach (Mumbai).

A highlight of the year was the fact that share prices of PSEs slated for disinvestment rose sharply between January and July by as much as over 500 per cent as in the case of HMT.

In the case of Engineers India, where the Government is in the process of disinvesting 51 per cent stake, the share prices rose by a whopping 310 per cent to touch Rs. 374 on July 15.

The Government expects to realise a minimum of Rs. 2,424 crores from disinvestment of equity in Maruti Udyog over three tranches that could go up to Rs. 3,158 crores, according to the release.

The expected realisation of Rs. 1,442 crores also includes the second tranche of disinvestment in MUL through the IPO route that would bring down the Government equity to around 25 per cent. The Government now holds around 44 per cent stake in the car company.

Another Rs. 18.18 crores is expected to be realised from the sale of equity in Jessop while Rs. 92 crores is expected from sale of Kanishka hotel property and Rs. 43 crores from Indraprastha hotel. Sale of Hotel Ranjit and Chandigarh properties would yield Rs. 29 crores and Rs. 17 crores respectively, it added.

PTI

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