Disinvestment of REC, NTPC, SJVN to be completed by March: FM
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Last Updated: Tuesday, December 01, 2009, 16:14
  
New Delhi: Disinvestment in three power PSUs - NTPC, Rural Electrification Corporation and Satluj Jal Vidyut Nigam - would be completed during the current financial year while the process of selling stake in other profit-making PSUs is already underway.

"Disinvestment of government shareholding in NTPC, SJVN and REC through public offering in domestic market, is under implementation. These public offerings are likely to be completed by March 31, 2010," Finance Minister Pranab Mukherjee said in a statement in Rajya Sabha.

While in NTPC and REC, five per cent stake each was being off-loaded, it was 10 per cent in SJVN through the capital market, he said.

This apart, the Department of Disinvestment has started dialogue with the administrative ministries and the central public sector undertakings (CPSUs) to assess their capital expenditure requirements to be raised through issue of fresh equity in case of other public sector undertakings.

Mukherjee's statement came in response to a calling attention motion by Tapan Kumar Sen (CPI-M) on "disinvestment of government shares in profit making central public enterprises."

Noting that only profit earning CPSUs will sustain investor-interest for sharing in their prosperity, the minister said, "Already listed profitable CPSEs not meeting the mandatory public shareholding of 10 per cent are to be made compliant."

Govt to take up USD 2.97 bn loan with World Bank chief CPSEs told not to invite bids for bulk deposits from banks

New Delhi: Government has asked the Central Public Sector Enterprises (CPSEs) to discontinue the practice of inviting bids for bulk deposits from banks to avoid undesirable competition among them.

"In order to avoid undesirable competition among banks leading to arbitrary hikes in deposit rates, which have consequences for the economy, and considering the need to moderate the cost of credit, Government has directed CPSEs to discontinue the practice of inviting competitive bids for bulk deposits," Mukherjee said today.

He was replying to supplementaries during Question Hour.

The minister said all public sector banks (PSBs) were advised to publish their card rates for bulk deposits of Rs one crore and above and in order to bring about a level playing field they were asked to consider uniform card rates for bulk deposits.

He also said that in view of huge liquidity in the system, to contain overall cost of funds and shrinking net interest margin of PSBs, presently the PSBs are offering lower interest rates for bulk deposits vis-a-vis retail deposits.

"Though this may lead to decrease in interest earning of some CPSEs, the move is aimed at benefiting the economy," he added.

PTI


First Published: Tuesday, December 01, 2009, 16:14


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