Govt mulls stake sale in BHEL

In what could be one of the biggest disinvestment of public sector enterprises in recent times, the government on Friday indicated that it is considering a 10% stake sale in the navratna PSU Bharat Heavy Electricals Ltd (BHEL).

In what could be one of the biggest disinvestment of public sector enterprises in recent times, the government on Friday indicated that it is considering a 10 per cent stake sale in the navratna PSU Bharat Heavy Electricals Ltd (BHEL).

HT Image

In his first interaction with the media after assuming office as minister of heavy industries and public enterprises, Vilasrao Deshmukh was said “The issue of disinvestment of BHEL is under consideration.”

“A final call will be taken only after an in-principal nod from the cabinet,”e he said, adding “We have a positive thinking on that line and would support whatever policy the government adopts on disinvestment of PSEs.”

The government currently holds a 67.72 per cent equity stake in BHEL, which has a market capitalisation of Rs 102,329 crore. A 10 per cent equity dilution will bring in over Rs 10,200 crore to the government.

Deshmukh also released a 100-day agenda, which includes setting up a auto component development fund with a corpus of Rs 1,000 crore, revival of sick PSEs like Hindustan Photo Films and Burn Standard Company and creation of a new “maharatna” category for PSEs.

Deshmukh has also recommended that the tenure of purchase of buses under the JNNURM scheme be extended beyond the June 30 deadline.