BHEL stake sale: Govt may take the crossholding route

Cash-rich PSUs such as Coal India, NMDC, SAIL, NTPC and ONGC may buy a stake in power equipment producer Bharat Heavy Electricals Ltd (BHEL), a ‘Maharatna’ category Central public sector enterprise (CPSEs). The proposal was discussed at the high-level inter-ministerial meeting called by Prime Minister Manmohan Singh on Tuesday. “This will help in two ways. First, the Government will get money. Second, it will not affect already subdued shares of BHEL on the stock exchanges,” a senior government official told Business Line. A sale of 5 per cent shares of BHEL to other PSUs at current market prices could fetch over Rs 1,300 crore. At the meeting, the Heavy Industries Ministry was asked to come out with viable options for BHEL. The options include buyback, dividend payment and disinvestment. However, the official added, considering the cash surplus position of BHEL, a buyback is not feasible. more at: http://www.thehindubusinessline.com/companies/bhel-stake-sale-govt-may-take-the-crossholding-route/article5422188.ece