'HSCC, EPIL in advanced stages for merger with similarly placed CPSEs'

Consultancy firms HSCC and EPIL are likely to be the first set of state-owned firms which will be merged with their peers in the current fiscal.

The government last October invited bids from similarly placed central public sector enterprises (CPSEs) for buying out entire 100 per cent stake in them, along with management control.

EPIL and HSCC are in advanced stages as bids have come in from respective sectoral CPSEs. The Alternate mechanism, led by finance minister, will meet to decide the reserve price, an official told PTI.

The official said once the reserve price is fixed, the bids from prospective buyers would be opened and the one which would have bid above the reserve price would be eligible to buyout the PSU on offer.

In the Budget for 2017-18, the then Finance Minister Arun Jaitley had announced the possibility of merger of PSUs to create large state-owned firms.

Consequently, in January this year, the government entered into an agreement with ONGC for strategic sale of its 51.11 per cent stake in HPCL for Rs 36,915 crore.

Hospital Services Consultancy Corporation (HSCC), under the Ministry of Health and Family Welfare, is engaged in the provision of consultancy services in health-care and other social sectors in India and abroad.

Engineering Projects India Ltd (EPIL), under the Heavy Industries Ministry, undertakes infrastructure projects on turnkey basis.

In the current fiscal the government has set a target of raising Rs 80,000 crore from disinvestment, lower than over Rs 1 lakh crore raised last year.