Disinvestment Current Affairs

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Cabinet approves dissolution of Central Inland Water Transport Corporation Limited

The Union Cabinet has given its approval to proposal for dissolution of Central Inland Water Transport Corporation Limited (CIWTC).

CIWTC was incorporated in February 1967 as Public Sector Undertaking under the Companies Act 1956 by the Central Government. It was under the administrative control of Ministry of Shipping (MOS).

It had taken over the assets and liabilities of the erstwhile River Steam Navigation Company Limited (RSNCL) under a scheme approved by the Calcutta High Court.

Why Government is closing CIWTC?

  • Since its inception CIWTC was incurring losses due to inherent limitation and infrastructure bottle necks and never could become viable company.
  • Central Government is closing it in line with its decision to revitalize sick CPSUs wherever possible or to wind up irretrievable cases.
  • The dissolution of the CIWTC would be initiated after disposal of movable and immovable assets. This would free up the assets for better utilization and for the benefit of the people.
  • A number of assets have been taken up by Inland Waterways Authority of India to provide services on National Waterway 4 on Brahmputra River.

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CCEA approves disinvestment of 15% in NBCC

The Cabinet Committee on Economic Affairs (CCEA) has approved the disinvestment of 15% paid up equity of National Buildings Construction Corporation Limited (NBCC).

Decision in this regard was taken by CCEA meeting chaired by Prime Minister Narendra Modi in New Delhi. The disinvestment of 15% will done out of Union Government’s 90% shareholding.

Key Facts

  • The disinvestment would result in estimated receipts of approximately 1,706 crore rupees to the Government.
  • However, the actual realization amount of receipts will depend upon the market conditions and the investor interest prevailing at the time of actual disinvestment.
  • The disinvestment would further broadbase NBCC’s shareholding and enhance the disinvestment receipts for Government utilization as per Disinvestment Policy.

About National Buildings Construction Corporation Limited (NBCC)

  • NBCC was incorporated in November 1960 as a wholly owned Union Government enterprise under the administrative control of the Union Ministry of Urban Development.
  • It was incorporated with the objective of becoming a leading company in the field of engineering, construction, and project management consultancy services.
  • Presently, Union Government holds 90% of the equity i.e. 54,00,00,000 shares and the balance 10% of the equity is held by the Public.
  • The NBCC IPO was launched in March, 2012, when the Union Government had divested 10% paid up equity capital of NBCC out of its 100% shareholding.

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CCEA approves 10% disinvestment in Coal India Ltd

Cabinet Committee on Economic Affairs (CCEA) has approved 10 per cent disinvestment in Coal India Limited (CIL).

Decision in this regard, was taken by CCEA meeting chaired by Prime Minister Narendra Modi in New Delhi. Presently, Union Government holds around 79.65 per cent stake in CIL.

It is the third disinvestment to be undertaken in CIL’s history and is expected to fetch around 21,000 crore rupees at current market capitalisation.

The disinvestment in CIL will be carried out through the offer for sale mechanism and the date and price of the stake sale is yet to be decided by the Union Finance Ministry.

It should be noted that the stake sale in CIL is part of Union Government’s disinvestment drive for financial year 2015-16 with target of 69,500 crore rupees. So far, Union Government raised around 12,600 crore rupees through regular disinvestment in FY 2015-16.

About Coal India Limited

CIL is an Indian state-controlled coal mining company. It is headquartered in Kolkata, West Bengal. It is the largest coal producer company in the world and contributes around 81% of the coal production in India.

Union Government of India owns around 80 per cent of the stake in CIL and controls its operations through Union Ministry of Coal.  In April 2011, CIL was conferred the Maharatna status by the Union Government. It is India’s 5th most valuable company in terms of market value.

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