The Government is considering the proposal to divest 10 per cent stake in Bharat Heavy Electricals Ltd, the Minister for Heavy Industries and Public Enterprises, Mr Vilasrao Deshmukh said on Friday in response to a question asked on the issue.
He said the proposal had to come from the Finance Ministry. “Once they decide, we will think of it,” he said without giving any timeframe.
The Government at present holds a 67.72 per cent equity stake in the state owned enterprise. The stake sale could bring into the company’s kitty about Rs 9,600 crore based on the company’s current market price. The company’s stock closed today at Rs 2,090.50, up by 2.83 per cent against the previous day’s closing price at Rs 2,032.95.
Announcing further plans of BHEL, the Minister said that the public sector enterprise would complete thermal and hydro projects by entering into memorandum of understanding with state government power generation companies.
He said that the Government was also considering stake sale in other public enterprises such as the loss-making Tide Water Oil (India) Ltd, Tyre Corp. of India, Andrew Yule & Co Ltd.
Rolling out his 100 days agenda, the Minister also said, “There is demand that large companies with turnover of over Rs 30,000 crore, which can become Indian multinational companies… should be given more power and freedom.”
He said that the Department of Public Enterprises had proposed a new category of ‘Maharatna’ classification that will give them increased power in investments, mergers and acquisition.
There was also good news for the auto and components industry. The Minister proposed reviving commercial vehicle sales by extending the JNNURM bus procurement programme for the entire fiscal. The scheme, which was announced under the stimulus package, was ending on June 30.
To ensure investments and technology upgradation in the auto component industry, the Department of Heavy Industries has recommended to the Finance Minister a Rs 1,000 crore Automotive Development Fund. This would provide an interest subsidy on loans availed for purchase of new plants and equipment.
Source: The Hindu Businessline