As in the case of several other CPSEs, employee protests and ongoing litigations were the major hurdles before the disinvestment of its assets.
For the first time, we managed to close down five companies without inviting employee wrath by offering attractive severance packages" The zombie existence of Hindustan Photo Films - the fourth highest loss-making entity after BSNL, Air India and MTNL (which together accounted for Rs 16,987 crore losses, or 62 per cent of the cumulative losses of 77 CPSEs in 2004/15) - is proof of how ineffective successive governments' plans and programmes for restructure, revival or disinvestment of PSEs have been.
The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has given its approval for disinvestment of 10 per cent paid- up equity of Housing and Urban Development Corporation ( HUDCO), an official statement said.
The government has set a disinvestment target of Rs 56,500 crore for this fiscal.
Historically, majority disinvestments have been typically made to strategic partners.
The experience suggests that fiscal convenience was the prime mover of such disinvestments.
The company was facing financial crunch and Patel had forwarded the disinvestment
proposal to the cabinet.
For the remaining two months of this financial year, four disinvestments
can still happen (see box, The Line-up Up To March).
The most important of these is Arun Shourie, the minister for disinvestment
, as privatization is known in India.
This generally was not the case for the South African disinvestments
, especially after 1984 and 1985.
In order to attract more investors, Balachander suggests that the government should give a discount of 5-10 per cent to retail investors in the disinvestment
New Delhi, Oct 19 (ANI): The Cabinet Committee on Economic Affairs (CCEA) today gave its approval for disinvestment
of five percent paid up equity capital of National thermal Power Corporation (NTPC), out of Government's shareholding, in the domestic market through book building process.