Arun-Jaitley______-770×433.jpg
GENERAL

Cupboard approves sale of govt stake in REC to PFC, agriculture export coverage – Information by Automobilnews.eu

Bild

Cupboard approves sale of govt stake in REC to PFC, agriculture export coverage


Within the second merger of public sector undertakings below this authorities, the Cupboard Committee on Financial Affairs (CCEA) on Thursday authorized sale of the federal government’s 52.63 p.c stake in REC Ltd to Energy Finance Company for an estimated Rs 15,000 crore.

“The CCEA gave in precept approval for strategic sale of the Authorities of India’s present 52.63 p.c of whole paid up fairness shareholding in REC Ltd to Energy Finance Company together with switch of administration management,” Finance Minister Arun Jaitley mentioned at a press convention after the Cupboard assembly right here.

The federal government held 57.99 p.c stake in REC, and 65.64 p.c in PFC at September-end.

Nevertheless, the federal government holding in REC got here all the way down to 52.63 p.c following stake sale by means of ETF.

Jaitley additionally mentioned he had talked concerning the merger of public sector undertakings working in the identical house within the finances for 2017-18.

In his finances speech, he had mentioned there have been alternatives to strengthen CPSEs by means of consolidation, mergers and acquisitions.

“By these strategies, CPSEs may be built-in throughout the worth chain of an business. It can give them capability to bear increased dangers, avail economies of scale, take increased funding selections and create extra worth for the stakeholders,” he had mentioned.

Later Thursday, an official assertion mentioned the REC-PFC deal intends to realize integration throughout the facility chain, receive higher synergies, create economies of scale and improve functionality to help vitality entry and vitality effectivity by improved functionality to finance the facility sector.

It might additionally permit for cheaper fundraising with improve in bargaining energy for the mixed entity.

Each REC and PFC are Central Public Sector Enterprises (CPSEs) below the Ministry of Energy.

Earlier, the federal government had deliberate to promote its whole 65.64 p.c stake in PFC to REC for round Rs 16,500 crore, together with transferring administration management.

Sources mentioned the plan was modified earlier this week in view of sure recommendations given by ministries, significantly the Energy Ministry.

On the finish of 2017-18, the whole sources of REC stood at over Rs 2.46 lakh crore, of which reserves had been Rs 33,515.59 crore. The web price of the corporate was Rs 35,490 crore and ‘money and financial institution steadiness’ was Rs 1,773 crore on the finish of March 2018.

PFC’s ‘reserves and surplus’ stood at Rs 37,221 crore, and ‘money and financial institution steadiness’ had been Rs 4,600 crore on the finish of March 2018.

The deal will assist the federal government scale up its disinvestment proceeds. Up to now, over Rs 32,000 crore has come into the disinvestment kitty from minority share sale in CPSEs and observe on provide of exchange-traded funds — CPSE ETF and Bharat-22.

The budgeted goal for PSU disinvestment is Rs 80,000 crore.

Earlier, the federal government bagged Rs 36,915 crore from the sale of its whole 51.11 p.c stake in oil refiner HPCL to ONGC in 2017-18.



Cupboard approves sale of govt stake in REC to PFC, agriculture export coverage – Information by Automobilnews.eu
Comments

TOP STORIES

Bild
To Top
SELECT LANGUAGE »