Next Round Of Disinvestment In The Offing With Union Govt Set To Invite Bidders For BEML,Concor And NINL

Pressing ahead with its disinvestment drive, the Union government is set to invite invite expression of interest in three more public sector companies, ET Now quoted Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey as saying.

The DIPAM is already in the process of completing the disinvestment in three government owned public sector undertakings (PSUs) - BPCL, Air India and Shipping Corporation.

“Strategic divestment by way of privatisation will be key to DIPAMs plans. After a long time, we are progressing forward. The government has proceeded with privatisation of Air India, BPCL, Shipping Corporation. Will come out with Expression of interest for NINL, BEML, Concor soon as well,” ET now quoted DIPAM secretary as saying

Earlier this week, DIPAM inviting invited bids to sell its 63.75% stake in Shipping Corporation of India (SCI) to a private investor. The bids have to be submitted by February 13, 2021. The government is proposing strategic disinvestment of its entire 63.75 per cent stake in SCI along with the transfer of management control.

CONCOR

In Nov 2019, the Union Cabinet approved the strategic disinvestment of 30.8 per cent shareholding of the Government of India (the Government of India holds 54.8 per cent equity currently ) in Container Corporation of India (CONCOR), the logistic arm of Indian Railways, along with transfer of management control to a strategic buyer.

In Dec 2019, DIPAM appointed three advisors to conclude the 31% stake sell in the government-owned Container Corporation of India (CONCOR)

CONCOR has a over 70 per cent share in the container train market with its large network of over 80 container terminals spread across the country. The company holds assets including 15,000 plus container wagons, a 26,000 containers, 14 gantry cranes and 102 reach stackers .

The company has entered in to joint ventures with shipping lines (like Maersk, CMA-CGM, Transworld, AllCargo); and logistics players like Transport Corporation of India and international port terminal operators like APM Terminals and DP World.

Though the container train operations sector had been privatised long back, private players continue to languish as CONCOR dominates the market. Ministry of Railways provides privileged access to railway land and tracks making it difficult for the private players to make significant headway.

BEML

The government is planning to sell 28 per cent of its stake in BEML through strategic disinvestment and retain 26 per cent after the dilution of its shareholding in the public sector undertaking, according to the report. The government currently holds 54.03 per cent stake in the Bengaluru-headquartered public sector undertaking that manufactures a variety of heavy equipment, such as that used for earth moving, metro coaches and mining.

NINL

In Jan 2020, the Cabinet Committee on Economic Affairs, CCEA has given in-principle approval for the sale of equity held by four Central Public Sector Enterprises and two-state PSUs in Neelachal Ispat Nigam Limited (NINL).

NINL has a 1.1 Mtpa integrated steel plant in Kalinganagaar in Odisha

Minerals and Metals Trading Corporation Limited (MMTC) holds majority stake of 49.78 per cent whin Neelachal Ispat Nigam Limited (NINL) while Odisha Mining Corporation (OMC) and Industrial Promotion and Investment Corporation of Odisha Ltd (IPICOL) have 20.47 per cent and 12 per cent stakes respectively. Three other CPSUs NMDC, MECON and BHEL hold minor share in NINL