GOVERNMENT OF INDIA

MINISTRY OF FINANCE
DEPARTMENT OF INVESTMENT AND PUBLIC ASSET MANAGEMENT
LOK SABHA
UNSTARRED QUESTION NO. 560
TO BE ANSWERED ON MONDAY, MONDAY, JULY 24, 2023
SRAVANA 2, 1945(SAKA)

Disinvestments

560. SHRI N. REDDEPPA:

Will the Minister of FINANCE be pleased to state:

(a) the details of all disinvestments conducted during the last five years;
(b) the details of the proposed disinvestment for this financial year;
(c) whether any of the disinvested companies were profit-making at the time of
disinvestment; and
(d) if so, the details thereof and if not, the reasons for disinvesting them?

ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(DR. BHAGWAT KISHANRAO KARAD)

(a): The details of disinvestment through Minority Stake Sale and strategic disinvestment
during 2018-19 to 2022 -23 are given at Annexure.

(b) : The Budget Estimate for disinvestment receipts in FY 2023-24 has been kept at
Rs.51,000 crore.

Disinvestment is an ongoing process, and execution/completion of specific transactions

hinges upon market conditions, domestic and global economic outlook, geopolitical
factors, investor interest and administrative feasibility.

The Government, since 2016, has given ‘in-principle’ approval for strategic
disinvestment of 36 cases of PSEs and/or Subsidiaries/ Units/ Joint Ventures of PSEs/
Bank. Out of the 36 cases, 33 cases are being handled by DIPAM and 3 cases are being
handled by the respective Administrative Ministry/Department. Out of the 33 cases being

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 handled by DIPAM, strategic disinvestment transactions have been completed in 10
cases ( 8 transactions are in CPSE to CPSE space while Air India and NINL have been
privatized). Of the remaining 23 cases, 5 PSEs are under consideration for closure; 1 case
held up due to litigation and 1 case is under Corporate Insolvency Resolution Process
(CIRP) in NCLT and 2 transactions found not feasible. Remaining 14 transactions are at
various stages.

In other PSEs, where the Government continues to retain control, disinvestment through
minority stake sale is carried out through various SEBI-approved methods such as Initial
Public Offer (IPO), Offer for Sale (OFS), Buyback of shares etc. from time to time based
on prevailing market conditions and investor interest.

(c) & (d): Of the 9 CPSEs strategically disinvested during the period 2018-19 to 2022-23,
seven CPSEs were profit making at the time of disinvestment. Minority stake sales in
various CPSEs were carried out during the period as per SEBI approved methods and
norms.

However, profit /loss is not among the relevant criteria for privatization/disinvestment.
The policy on strategic disinvestment/privatization is based on the economic principle
that Government should discontinue in sectors, where competitive markets have come of
age and economic potential of such entities may be better discovered in the hands of
strategic investor due to various factors such as infusion of capital, technological
upgradation and efficient management practices.

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 Annexure

Annexure to the Rajya Sabha Unstarred question No.560 for answer on 24.7.2023

Details of Disinvestment conducted during the period 2018-19 to 2022-23

A. Completed Strategic Disinvestment Transactions

Year CPSE

1. REC Limited

2. HSCC (India) Limited

2018-19
3. National Projects Construction Corporation Limited (NPCC)

4. Dredging Corporation of India Limited (DCIL)

1. THDC India Limited

2019-20 2. North Eastern Electric Power Corporation Limited (NEEPCO)

3. Kamarajar Port Limited

2021-22 1. Air India ^

2022-23 1. Neelanchal Ispat Nigam Limited (NINL)

^Subsidiaries which are now with AIAHL are still to be divested

NOTE 1: NINL was a Joint Venture company, in which 4 CPSEs namely MMTC,
NMDC, BHEL and MECON and 2 State PSUs of Odisha Government; namely
IPICOL and OMC were share-holders. GOI holds no equity in NINL.

NOTE 2: No strategic disinvestment was carried out 2020-21.

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 B. Initial Public Offer (IPO)

Year Name of the Entity

1. MSTC Limited

2. Garden Reach Shipbuilders & Engineers Limited GRSE)

2018-19 3. IRCON (International) Limited

4. RITES Limited

5. Mishra Dhatu Nigam Limited (MIDHANI)

1. Rail Vikas Nigam Limited (RVNL)

2019-20
2. Indian Railways Catering and Tourism Corporation (IRCTC)

1. Mazagon Dock Shipbuilders Limited (MDL)

2020-21 2. Indian Railway Finance Corporation (IRFC)

3. RailTel Corporation of India Limited

2022-23 1. Life Insurance Corporation of India (LICI)

NOTE: No IPO was launched during 2020-21

C. Offer for Sale (OFS) including Employees OFS

Year Name of the Entity

2018-19 1. Coal India Limited (CIL)

2019-20 1. RITES Limited

1. Hindustan Aeronautics Limited (HAL)

2. Bharat Dynamics Limited (BDL)

3. Indian Railway Catering and Tourism Corporation Limited (IRCTC)

2020-21
4. Steel Authority of India Limited (SAIL)

5. IRCON International Limited

6. Tata Communications Limited

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 7. Rail Vikas Nigam Limited (RVNL)

1. SUTTI (AXIS BANK)

2. NMDC Limited

2021-22 3. Housing & Urban Development Corporation Ltd (HUDCO)

4. Hindustan Copper Limited (HCL)

1. Oil and Natural Gas Corporation Limited (ONGC)

2022-23 2. Paradeep Phosphate Limited (PPL)

3. Indian Railway Catering and Tourism Corporation Limited (IRCTC)
4. Hindustan Aeronautics Limited (HAL)

D. Buyback Transactions

Year Name of the PSE

1. KIOCL Limited

2. National Aluminum Company Limited (NALCO)

3. NLC India Limited

4. Cochin Shipyard Limited (CSL)

5. Bharat Heavy Electricals Limited (BHEL)

2018-19 6. NHPC Limited

7. Indian Oil Corporation Limited (IOCL)

8. Oil & Natural Gas Corporation Limited (ONGC)

9. Coal India Limited (CIL)

10. NMDC Limited

11. Oil India Limited (OIL)

1. MOIL Limited

2019-20 2. Mazagon Dock Shipbuilders Limited (MDL)

3. Security Printing & Minting Corporation India Limited (SPMCIL)

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 1. RITES Limited

2. KIOCL Limited

3. NTPC Limited

2020-21 4. NMDC Limited

5. Engineers India Limited (EIL)

6. National Aluminum Company Limited (NALCO)

7. GAIL (India) Limited

2021-22 1. MOIL Limited

2022-23 1. GAIL (India) Limited

E. Exchange Trade Funds

a) CPSE ETF*

Year Issue Constituents

1. Bharat Electronics Limited

FFO 3 2. Coal India Limited

2018-19
FFO 4 3. NBCC (India) Limited

4. SJVN Limited

5. NLC India Limited

6. NTPC Limited

FFO 5 7. Indian Oil Corporation Limited

2019-20
FFO 6 8. Oil Natural Gas Corporation

9. Power Finance Corporation Limited

10. Oil India Limited

*GAIL, CONCOR, EIL and REC were excluded whereas NTPC, NBCC, NLC and SJVN
were included at different stages

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 b) Bharat 22 ETF

Year Issue Constituents

1. Axis Bank

2. Bank of Baroda

3. Bharat Electronics Limited

FFO 1 4. Bharat Petroleum Corporation Limited
2018-19
FFO 2
5. Coal India Limited

6. Engineers India Limited

7. Gail India Limited

8. Indian Bank

9. Indian Oil Corp Limited

10. ITC Limited

11. Larsen & Toubro Limited

12. National Aluminum Company Limited

13. NBCC (India) Limited

14. NHPC Limited

15. NLC India Limited

2019-20 FFO 3
16. Oil & Natural Gas Corporation Limited

17. NTPC Limited

18. Power Finance Corporation Limited

19. Power Grid Corporation of India Limited

20. Oil India Limited

21. SJVN Limited

22. State Bank of India

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