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Stake Sell in BPCL and Four Other PSUs
Why is it in the news?
- The Union Cabinet approved sale of the government's stake in blue-chip oil firm Bharat Petroleum Corporation Limited (BPCL), Shipping Corporation of India (SCI) and onland cargo mover Container Corporation of India (Concor),
- Government has decided to cut shareholding in select public sector firms below 51% to boost revenue collections.
More in the news
- BPCL is country's second-biggest state-owned refiner.
- The Cabinet approved sale of the government's entire 53.29% stake, along with the transfer of management control in BPCL.
- SCI and Concor:
(1) Cabinet approved the sale of 53.75% of the government holding of 63.75% stake in SCI and 30.9% stake in Concor.
(2) The government currently holds 54.80% in the Concor.
- Indian Oil Corporation (IOC):
(1) Cabinet has approved reducing the government's stake in select PSUs, such as Indian Oil Corporation (IOC), to below 51%.
(2) Government will continue to retain management control.
- Purpose:
(1) This move would help the government to garner the bulk of the budgeted disinvestment receipts.
(2) The government has its highest ever divestment target of Rs 1.05 lakh crore in current fiscal.
Source
The Hindu.