Reviving the divestment initiative, the finance ministry has shortlisted seven blue-chip public sector companies in which 5-10 per cent of government holding will be offloaded.
These PSUs are Container Corporation (Concor), Bharat Sanchar Nigam Ltd, Indian Railways Finance Corporation, Power Finance Corporation, PowerGrid Corporation, Shipping Corporation of India and Nalco.
"We have identified a dozen companies and are in talks (with various departments) to begin the process of sale of 5-10 per cent stake in 6-7 companies during the current financial year," a finance ministry official said.
The Left parties, which had earlier opposed disinvestment in profit-making PSUs, have now softened their stance on the sale of minority stakes in these companies.
But they continue to oppose the sale of government shares in "navratna" PSUs. The list is expected to be discussed with the Left parties before a final decision is taken by the Cabinet.
The modalities, timing and the quantum of disinvestment were yet to be finalised, the official said, adding that a final picture would emerge towards the end of the month. The Centre is targeting to raise between Rs 4,000 crore (Rs 40 billion) and Rs 5,000 crore (Rs 50 billion) from the sale of its stakes in PSUs.
On Saturday, a committee of secretaries cleared the appointment of SBI Caps to set the value of the government's 49 per cent stake in Balco. Officials said the valuation would be completed within a month.
The government has decided to sell 44 per cent to Sterlite Industries, in step with the shareholders' agreement which was signed when Sterlite Industries took control of the company in 2001. The remaining 5 per cent will be sold to Balco employees.
The sale was delayed by a year after the Left parties and trade unions stepped up their protests against disinvestment in Balco during the National Democratic Alliance government's tenure. The appointment of a strategic adviser for valuation was delayed due to administrative reasons.
Officials said the government was hoping to sell the remaining stake in the company by the end of the current financial year.
The government is already working on selling 8 per cent of its holding in Maruti Udyog through a public offer. In step with the divestment initiative, the shipping ministry has agreed sell 15 per cent of its stake in Shipping Corporation after a stock split. But the mines ministry is yet to clear the sale of a minority stake in Nalco.
