Friday, February 20, 2009

Government is planning divestment in five PSUs

Government is planning divestment in five PSUs through Initial Public Offers. Rahul Khullar, disinvestment secretary, said a decision to launch the IPOs will be taken by the new government in May-June, while all preparations have been made. Last year the government had approved dozen-odd PSUs to go public and all of them had initiated steps to disinvest.

The PSUs had started early in 2008-09 to launch their public issues. However, by the time they were to launch the issue, the market had already tanked, Khullar added.

On 16th February 2009, government also said that oil bonds would not be issued during the next financial year and whole amount of subsidy of Rs 95,579 crore estimated under various heads and would be paid in cash. Ashok Chawla, economic affairs secretary, ruled out oil bonds, based on oil ministry estimation that oil marketing companies would not suffer losses on motor fuels even if international crude prices average $70 a barrel during 2009-10. source:

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