Finance Ministry is reworking strategic sale procedure to ensure outright sale of Central Public Sector Enterprises (CPSEs) within 4 months of issuance of documents to potential investors. However, for CPSEs like Air India, which atre relatively bigger in size, the timeline for completion of strategic sale is likely to be fixed at 6 months from the date of issuance of Preliminary Information Memorandum (PIM) about the company. The other CPSEs for which approvals are in place for outright sale include Hindustan Fluorocarbon, Hindustan Newsprint, HLL Life Care, Central Electronics, Bridge & Roof India, Nagarnar Steel plant of NMDC and units of Cement Corporation of India and ITDC.
An official has reportedly said that the procedure for sale would be drafted as such that the outright sale could go on simultaneously for more than 1 CPSE. For bigger CPSEs, the total time for completion may be extended to 6 months. “The strategic sale policy is already in place, but the procedure needs to be streamlined so that the sale process is completed within 3-4 months' time. The thinking is that if a process cannot be completed in 4 months then it should be abandoned," an official told the Press Trust of India.
The Department of Investment and Public Asset Management had issued Preliminary Information Memorandum (PIM) for sale of Pawan Hans, Bharat Pumps & Compressors Ltd, Hindustan Fluorocarbons Ltd in April 2018, while the same for Scooters India, Hindustan Newsprint was floated in March 2018. The same of SAIL's Alloy Steel Plant was issued in February, while that of Hindustan Prefab was posted on website in October 2017. In last fiscal the government had raised Rs 84,972 crore from CPSE disinvestment, of which Rs 15,914 crore came in from strategic stake sale. In the current fiscal, the government has an aim of meeting the 90000 crore disinvestment target. Meanwhile, NITI AAYOG has identified 35 profitable and loss making CPSEs which it seems fit for strategic sale.