Union Budget 2019: Disinvestment is government’s preferred way to liquidate loss-making, inefficient PSUs
The concept of disinvestment follows the dictum: The government has no business to be in business
Bailout package for debt-ridden BSNL: Keeping Air India and public sector telecom firm afloat at all costs is a monumental blunder
DoT is considering a Rs 13,000-crore bailout plan for state-owned Bharat Sanchar Nigam Ltd (BSNL)
Agarwal has delisted his flagship Vedanta Resources from the London Stock Exchange (LSE) and is now concentrating on growing mineral mining and oil and gas businesses out of the India-listed firm, Vedanta Ltd.
Air India’s whopping outstanding to banks and accumulated losses was a put-off for potential suitors for a going concern sale
States, including Chhattisgarh, Jharkhand and West Bengal, are set to get nearly Rs 60,000 crore from 11 coal blocks sold in the ongoing auction, a top official said.
Hindalco Industries has won the Gare Palma IV/5 mine in Chhattisgarh by outbidding companies like BALCO, Sesa Sterlite, Ambuja Cements
With aggressive bidding for coal blocks likely to continue on the fourth day, the government today said that poor states would benefit from the auction.
Mining baron Anil Agarwal-led Vedanta Group has bid for the most number of 14 coal mines out of 23 on offer in the first round of auction which also have aggressive bids by Aditya Birla Group, Adani and Naveen Jindal group, but was shunned by foreign players.
The government currently holds 29.5 percent stake in HZL and 49 percent in Balco.
The nationalisation acts provided only for the transfer of all assets, rights and interests of a company to the central government. They do not get into the nitty-gritty of how these companies are to be run
In the Budget, the government estimated to collect Rs. 43,425 crore from selling stake in PSUs and another Rs. 15,000 crore from sale of residual stake in erstwhile government companies.<br />
The government has budgeted to raise Rs 43,425 crore through disinvestment in the current fiscal, higher than Rs 40,000 crore raised in 2013-14.
The government will be selling its stake in four PSUs and will be listing one in an attempt to shore up its finances.
The government, which holds 90 percent stake in Coal India Ltd (CIL), will get Rs 16,485.71 crore and use the amount in meeting the fiscal deficit target.<br /><br />
Anil Agarwal's Vedanta Resources has sought shareholder nod to extend the offer to acquire residual government stakes in Hindustan Zinc Limited and Balco.<br /><br />
A shortfall in sale proceeds this year will compound the formidable challenges Chidambaram faces. The economy is growing slower than the official forecast, hurting tax revenues. He is widely expected to meet his deficit target, but he may yet have to find other revenue sources or cut deeper into spending.<br /><br />
Vedanta Resources has not revised its Rs 17,275-crore offer made in January to buyout government's remaining stakes in Hindustan Zinc and Bharat Aluminium Company.
In January, the group had offered Rs 15,493 crore for buying 29.5 percent in HZL, and Rs 1,782 crore for 49 percent residual holding in Balco.
Vedanta has approached the government suggesting a fair market valuation for Hindustan Zinc Limited and Bharat Aluminium Limited, reports CNBC-TV18.