Govt moves swiftly for disinvestment of 3 PSUs to meet target

Moving on fast track to meet the disinvestment target, the government is seeking consultants and legal advisor for strategic sale of PDIL and NPCC, besides Pawan Hans.

As for the National Projects Construction Corporation Limited (NPCC), the government has decided to disinvest 100% of its shareholding through merger with a similarly-placed CPSE.

The government proposes to engage transaction advisor from a reputed professional consulting firm, investment and merchant bankers, financial institutions, banks and the like for providing advisory services and managing the disinvestment process.

Similarly, the government has sought applications for engagement of an advisor and a legal advisor for 100% strategic disinvestment of Project Development India Ltd (PDIL) and Hindustan Prefab Ltd (HPL).

The government has already given 'in-principle' approval to disinvestment of 100% of its shareholding in both PDIL and HPL through strategic sale with transfer of management control, a public notice stated.

The last date for sending in application for PDIL and NPCC is February 3 while for HPL, it is February 6.

PDIL is into consultancy and engineering organisation, providing services for design, engineering and related project execution in fertiliser, oil and gas, refinery, chemical and infrastructure sector.

Set up in 1948, HPL was primarily manufacturing prefabricated housing units to provide shelter to the displaced persons from West Pakistan.

The government is looking at Rs 56,500 crore in disinvestment proceeds this fiscal. Of this, Rs 36,000 crore is to come from minority stake sale in PSUs and another Rs 20,500 crore from strategic stake sale.

The fiscal target continues to be a long way off with total collections of about Rs 24,000 crore in the nine months of the financial year so far.

Incidentally, the first strategic sale in a PSU also happened under the NDA rule in 1999-2000 when the government offloaded 74% equity in Modern Food Industries to Hindustan Lever for Rs 105.45 crore.

Yesterday, the government invited applications for engagement of advisor and legal advisor for 51% strategic disinvestment of Pawan Hans.

Pawan Hans is a joint venture where state-owned ONGC holds 49%.