New Delhi [India], Nov 21 (ANI): In a major decision, the Cabinet Committee on Economic Affairs (CCEA) accorded 'in-principle' approval for strategic disinvestment in five central public-sector enterprises (CPSEs) -- Bharat Petroleum Corporation Ltd (BPCL), Shipping Corporation of India, Container Corporation of India, THDCIL, and NEEPCO.Briefing the media about the decisions on Wednesday, Finance Minister Nirmala Sitharaman said there will be strategic disinvestment of central government's shareholding of 53.29 per cent in Bharat Petroleum Corporation Ltd (except its equity shareholding of 61.65 per cent in Numaligarh Refinery Limited (NRL) and management control) along with transfer of management control to a strategic buyer.There will be strategic disinvestment of BPCL's shareholding of 61.65 per cent in NRL along with transfer of management control to a CPSE operating in the oil and gas sector, she said.The minister said there will be strategic disinvestment of the central government's shareholding of 63.75 per cent in Shipping Corporation of India Ltd along with transfer of management control to a strategic buyer.In the Container Corporation of India Ltd. (CONCOR), there will be strategic disinvestment of the central government's shareholding of 30.8 per cent (out of 54.8 per cent equity presently held) along with transfer of management control to a strategic buyer.While in Tehri Hydro Development Corporation India Limited (THDCIL), there will be strategic disinvestment of government's shareholding of 74.23 per cent along with transfer of management control to identified CPSE strategic buyer - NTPC.In North Eastern Electric Power Corporation Limited (NEEPCO), there will be strategic disinvestment of the central government's shareholding of 100 per cent along with transfer of management control to an identified CPSE strategic buyer - NTPC.An official release said that strategic disinvestment of CPSEs will be undertaken through already established procedures and mechanisms.It said that the resources unlocked by the strategic disinvestment of these CPSEs would be used to finance the social sector and developmental programmes of the government benefiting the people.The unlocked resources would form part of the budget and the usage would come to the scrutiny of the public.The strategic buyer is expected to ring in new management/technology/investment for the growth of these companies.The release said that the government reinitiated the policy of strategic disinvestment in 2015 in order to open up sectors for private enterprise to bring efficiency in management that would contribute to general economic development.Finance Minister, in her budget speech of 2019, had also announced that in view of current macroeconomic parameters, more CPSEs will be offered for strategic disinvestment.The release said strategic disinvestment is guided by the basic economic principle that the government should discontinue its engagement in manufacturing/producing goods and services in sectors where the competitive markets have come of age, and such entities would most likely perform better in the private hands due to various factors such as technology up-grading and efficient management practices. (ANI)
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