Disinvestment of Government Enterprises: Cabinet Approves Sale of Government Stake (Download PDF)

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Continuing with disinvestment the Union Cabinet approved the sale of its entire stake of 73.47 % in the 41-year-old Mini Ratna firm Dredging Corporation of India. for around Rs1,400 - 1,500. Government plans to raise Rs72,500 crore through disinvestment in Central Public Sector Enterprises in 2017 - 18.

Image of Disinvestment of Government Enterprises

Image of Disinvestment of Government Enterprises

Image of Disinvestment of Government Enterprises

What is Dredging Corporation of India?

  • DCI was set up in 1976- Vishakhapatnam-based

  • It is involved in maintenance dredging for various major ports, beach nourishment, land reclamation, shallow water dredging, and project management consulting.

  • Employs around 500 people and is listed on BSE and National Stock Exchange.

Why is the Government Selling the PSUs?

  • A core group of secretaries on disinvestment, headed by the cabinet secretary, approved the sale of DCI. The government think tank Niti Aayog too had favoured disinvestment.

  • Strategic sale of stakes in profitable PSUs will boost state revenue and bridge the fiscal deficit, but has repeatedly fallen short of its disinvestment targets in the past.

Is Government Planning to Sell Other PSUs?

  • Government is looking to raise around Rs. 9,000 crore by selling 10 % equity stake each in the state-run companies Bharat Heavy Electricals Ltd and Oil India Ltd as part of its plan to raise funds from its equity stakes in 16 PSUs to meet its ambitious disinvestment target for the next financial year 2017 - 18.

- Published/Last Modified on: April 13, 2018

Economy

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