The Narendra Modi government has cleared strategic disinvestment in five state-run companies including Bharat Heavy Electricals Ltd. A cabinet meeting chaired by Prime Minister Narendra Modi approved the sale of government shareholding in Neelachal Ispat Nigam Ltd, Minerals and Metals Trading Corporation Ltd, National Mineral Development Corp and MECON, apart from BHEL, Union minister Prakash Javadekar told mediapersons on Wednesday.
The cabinet committee on economic affairs approved strategic disinvestment of 49.78% shareholding of MMTC and 10.10% in NMDC. The cabinet also cleared the strategic disinvestment of 0.68% in MECON and BHEL. It approved the sale of 12% disinvestment in Industrial Promotion and Investment Corporation of Odisha Ltd and 20.47% in Odisha Mining Corporation.
READ: It’s a Catch-22 for finance minister Nirmala Sitharaman
The Cabinet meeting on Wednesday also cleared India’s migration and mobility partnership agreement with France. The pact was signed in March 2018 and is valid till 2025. The agreement has a provision for auto renewal on expiry. Another MoU with the United Kingdom for enabling energy self-sufficiency for the Indian Railways. The disinvestments will release resources for social sector and developmental schemes of the Union government.
Last month, the Modi government had cleared some big-ticket disinvestments including sale of shares in Bharat Petroleum Corporation Ltd and Shipping Corporation of India. The Narendra Modi government has made its intention to exit PSUs in non-strategic sectors.
READ: NSO confirms slowdown fears; pressure on govt to step up spending
The Union budget presented by finance minister Nirmala Sitharaman had set a disinvestment target of Rs 1.05 lakh crore in the current financial year. The proceeds from the divestment programme is key to the government’s efforts to meet the revenue shortfall in 2019-20. The revenue shortfall may exceed the Rs 2 lakh crore forecast by the government.