India’s Top PSUs 2019

21 Disinvestment in PSUs The government achieved the disinvestment target of ` 1000 bn in FY18. In FY18, disinvestment target had been raised by 77% from the previous year. Trends in PSU disinvestment targets and achievements * FY16 disinvestment target excludes strategic disinvestment of ` 285 bn ** FY17 disinvestment target includes ` 360 bn as disinvestment of CPSEs and ` 205 bn from strategic disinvestment *** FY17 disinvestment achievement includes ` 354.68 bn from disinvestment of CPSEs and ` 107.79 bn from disinvestment of strategic holdings and income from management of SUUTI investment Source: Department of Investment and Public Asset Management Key policy decisions in FY18-19 The key policy decisions taken by the government with regards to PSUs are listed below. Disinvestment Policy • InMar 2019, the government approved procedure and mechanism for strategic disinvestment of the PSUs. As per the decision, the alternativemechanismhas nowbeen delegated powers to decide quantumof shares to be transacted, the mode of sale and final pricing on any strategic disinvestment case where government has given its ‘in principal’ approval. The mechanismwill also lay down the principles and guidelines for such pricing and also select the strategic partner finalizing the terms and conditions of sale. It will also decide on the proposals of Core Group of Secretaries on Disinvestment (CGD) with regard the timing, price, the terms and conditions of sale and any other related issue to the transaction. This is expected to facilitate quick decision-making and obviate the need for multiple instances of approval by the government for the same PSU. Earlier in August 2017, the government had approved setting up of an Alternative Mechanism (AM) to decide on the matters relating to terms and conditions of the sale from the stage of inviting of Express of Interests (Eols) till inviting of financial bid. • The government has approved listing of 18 PSUs on stock exchanges to unlock the value of the company, facilitate resource mobilisation, encourage public participation through ‘people’s ownership’ and promote corporate governance norms in these PSUs. The government has approved listing of PSUs in sectors like railways, defence, power, steel, renewable energy and insurance. The Government has also unveiled a mechanism/procedure along with indicative timelines for listing of CPSUs.