|
Other
than the Lagan Jute Machinery Company Limited and Modern Food Industries
(India) Limited, only minority stakes in different PSEs were sold
till 2000. The Government has now modified its policy to emphasise
on strategic sales. During the last quarter of 2000-01, 51% shares
of BALCO have been sold to a strategic investor. The disadvantages
of sale of minority stakes by the Government have been found to
be as follows :
 |
Lower realisations because the management control is not transferred.
Moreover, it signals lack of commitment to efficient governance
of PSEs. |
|
With
the limited holding remaining with the Government after minority
sales, only small stakes can be offered to the strategic partner,
if it is decided to go for a strategic sale subsequently. This
depresses the possibility of higher realizations from the strategic
partner, especially since the latter has to offer the same price
to other shareholders also through an open offer. |
|
The
minority sales also give the impression that the main objective
of the Government is to obtain funds for reducing its fiscal
deficit. |
The
following table indicates the actual disinvestment from 1991-92
to 1999-2000, the methodologies adopted for such disinvestment and
the extent of disinvestment in different CPSUs
| Year
|
No.
of PSEs in which equity sold
|
Target
receipt for the year
(Rs. In Crores)
|
Actual
receipts
(Rs. In Crores)
|
Methodology
|
| 1991-92
|
47
(31 in one tranche and 16 in other)
|
2500
|
3038
|
Minority
shares sold by auction method in bundles of "very good", "good",
and "average" companies. |
| 1992-93
|
35
(in 3 tranches)
|
2500
|
1913
|
Bundling
of shares abandoned. Shares sold separately for each company
by auction method. |
| 1993-94
|
.
|
3500
|
Nil
|
Equity
of 7 companies sold by open auction but proceeds received in
94-95. |
| 1994-95
|
13
|
4000
|
4843
|
Sale
through auction method, in which NRIs and other persons legally
permitted to buy, hold or sell equity, allowed to participate. |
| 1995-96 |
05
|
7000
|
362
|
Equities
of 4 companies auctioned and Government piggy- backed in the
IDBI fixed price offering for the fifth company. |
| 1996-97
|
01
|
5000
|
380
|
GDR
(VSNL) in international market. |
| 1997-98
|
01
|
4800
|
902
|
GDR
(MTNL) in international market.
|
| 1998-99
|
05
|
5000
|
5371
|
GDR
(VSNL) / Domestic offerings with the participation of FIIs
(CONCOR, GAIL). Cross purchases by 3 oil sector companies
i.e. GAIL, ONGC & IOC
|
| 1999-00
|
03
|
10000
|
1584
|
GDR
(GAIL) in international market & MFIL's strategic sale. VSNL
domestic issue.
|
| 2000-01
|
03
|
10000
|
1868
|
BALCO,
KRL(CRL) & MRL through strategic sale / acquisition
|
| Total
|
42*
|
54,300
|
20,261
|
.
|
*
Total number of companies in which disinvestment has taken place
so far
The
realisations of Rs. 20,261 cr. shown above account for an aggregate
disinvestment of about 16% equity of 42 PSEs.
|
Disinvestment till Now