Govt may sell 5% in Bhel to other PSUs to raise Rs 2,100 cr

The government plans to sell 5% stake in electrical equipment major BHEL next month through a block deal to state-owned financial institutions and PSUs to raise close to Rs 2,100 crore. The move follows a decision by an empowered group of ministers last week, clearing sale of 10% stake in Indian Oil Corporation through a block deal to Oil India and ONGC, with an aim of garnering close to R5,000 crore. With these block deals, which would strengthen the practice of cross-holdings amongst the largest PSUs, and R20,000 crore that Coal India is set to hand out to it by way of a special dividend and dividend distribution tax, the government intends to reduce the shortfall in its receipts and fulfill the promise of reducing fiscal deficit to 4.8% of the GDP. “The disinvestment programme for BHEL is on and the stake sale may happen in the first half of February, so that the process is completed before the election code of conduct comes into play. more at: http://www.financialexpress.com/news/govt-may-sell-5-in-bhel-to-other-psus-to-raise-rs-2100-cr/1219133