Five Punjab Psus To Be Privatised Soon

The selloff train is gathering momentum in Punjab with the state government set to divest its stake in five public sector undertakings soon.

The five public sector undertakings are Puncom (Punjab Communications), Punjab Alkalis, Punjab Tourism Development Corporation (PTDC), Punjab Tractors Ltd (PTL) and Conware (Container Warehouse).

The divestment of PunCom was in the most advanced stages and would be completed by the end of February, Vinny Mahajan, disinvestment director, told Business Standard.

The selloff process was held back for some time to safeguard interests of employees. Labour union had requested for introduction of a voluntary retirement scheme (VRS) before the ownership was transferred to a private party. Even bidders had supported the VRS idea.

 

PunCom is not a public sector undertaking of the Punjab government but a promoted company. However, all the clauses of VRS for the state government employees would be applicable in the case of PunCom workers.

The financial burden because of the golden handshake would depend on the number of employees opting for VRS, she added.

The divestment of Punjab Alkalies was likely to be completed by March. The state government had invited expression of interest (EoI) and due diligence would start next week, Mahajan said.

The divestment of Punjab Tractors Ltd (PTL) would be through by the end of March. PTL would be divested along with its two subsidiaries, Swaraj Mazda and Swaraj Engines, the divestment director said.

She said the Punjab State Industrial Development Corporation (PSIDC) had not entered into any tie-up with a financial institution for the divestment of its 24 per cent stake in PTL.

PSIDC would go ahead independently for disinvestment, the disinvestment director added.

The disinvestment of Punjab Tourism Development Corporation was is also on cards. The PTDC has 18 tourists complexes in the state and four in Dharamshala and Jaipur.

In the case of PTDC, the government is planning to demerge the corporation