The Centre is reportedly planning to cut its stake in government-run companies, like NTPC Ltd, Steel Authority of India (SAIL) and Power Grid Corporation (PGCIL), to 49 percent, according to a media report.
The government has set a timeline of three years to lower its stake in most central public sector enterprises (CPSEs). There are over 250 CPSEs in which the government holds a 51 percent stake or more, according to a report in The Economic Times.
However, CPSEs that operate in sectors of strategic importance, such as defence and oil, will not be included in this plan.
“In some companies such as BPCL and HPCL the government has to maintain at least 51 percent holding as a Supreme Court verdict in 2003 had restrained the government from privatising them,” a government official was quoted as saying by the newspaper.
Fuel retailer Indian Oil Corporation (IOC) beat Oil and Natural Gas Commission (ONGC) for the second year in a row to become India's most profitable state-owned company.
IOC, which has for decades been India's biggest company by turnover, in May posted a record net profit of Rs 21,346 crore for the fiscal year ended 31 March, 2018 (FY 2017-18), up 12 percent from Rs 19,106 crore in the previous fiscal. ONGC's FY18 numbers showed the explorer logged a 11.4 percent rise in net profit to Rs 19,945 crore.
For fiscal 2017-18, HPCL reported its highest-ever net profit of Rs 6,357 crore on a turnover of Rs 2.43 lakh crore. BPCL reported a net profit of Rs 7,919 crore for the fiscal.
With inputs from PTI
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Updated Date: Jun 04, 2018 21:16:41 IST