Govt Mulls Outright Sale Of 23 Psus

The government is considering outright sale of some units of the public sector undertakings (PSUs) shortlisted by the industry ministry for formation of joint ventures. This is a departure from the earlier policy of restricting divestment to 74 per cent in non-core PSUs.

"We are not averse to selling 100 per cent stake in certain units," minister of state for industry Sukhbir Singh Badal said.

"The policy of restructuring a PSU into distinct marketable units and hiving some of them off is part of the comprehensive strategy for PSU reform." The industry ministry on Tuesday announced a comprehensive strategy to improve performance of 48 PSUs under the department of heavy industry at the meeting of the parliamentary consultative committee on industry.

 

The government has given its approval for the conversion of 23 of the 48 PSUs into joint venture companies. According to the minister, an inter-ministerial group has been set up under the department of heavy industry to oversee the process of joint venture formation/strategic sale. The group is looking into the appointment of consultants, evaluating the joint venture bids and making recommendations on suitable partners. The group will negotiate with bidders wherever required.

"We will be keeping all our options open when the bids come in, and the best offer, whether it requires 51 per cent divestment or an outright sale of the 100 per cent, will be accepted," says Badal. "Of course, we would like to retain some government stake to assure the workers that their interests will be protected. But if partial divestment is not in the best interest of the PSU, we will not insist on it," he added.

Joint ventures with partners capable of providing significant technical, financial and marketing inputs is part of the comprehensive reform strategy for PSUs that includes financial restructuring and manpower rationalisation.