PRIVATISATION OF PSUS
Energy, manufacturing & infra to remain bedrock of India's bull market: Nilesh Shah
It is very likely that these very sectors are going to basically get a fresh impetus. You are right that yes, in term one, these pockets did not yield returns. But in the second term, especially post COVID, we have seen massive returns and I probably think that is only the start, be it defence, be it space, be it many of the other areas.
RBI dividend will have economic dividends
RBI came into this windfall because of high interest rates in advanced economies, which may persist before an eventual cyclical inversion. The strength of India's recovery from the pandemic also contributed to the RBI surplus, and monetary policy would be inclined to pursue this course by easing interest rates ahead of the pack. Inflation is offering comfort on the demand side for an interest rate downcycle. Food inflation, less amenable to demand management, remains a concern.
Post-Covid capex pumps PSU muscles
A reappraisal of PSUs, however, could slow the longer trend of GoI getting out of business. And it needs to filter out the temporary effects of economic management. PSU banks are unlikely to retain their new-found health against private competitors for an extended period. Government capex, similarly, has a shelf life, after which private investment is expected to take over. That means companies borrowing from the cheapest lender, often from abroad, to build capacities. Neither consumption- nor investment-led growth assures a special place for PSUs. They will have to compete.
Are there more legs to the rally in PSUs or is this space getting frothy? Rajeev Mantri explains
Rajeev Mantri of Navam Capital says regulator action and frothiness in smallcap and midcap segments have spooked the market. Privatisation of PSUs, attractive investment themes in metals and banking stocks, and alignment with renewable energy, healthcare, and fintech sectors are key areas of interest. Metals and banking stocks are looking very attractive and it also plays into the larger theme of the privatisation policy.
Commandeering heights: Shift from disinvestment to enhancing PSU value is smart economics and nifty politics
PSU reform and privatisation have been ongoing since the times of Rajiv Gandhi, P V Narasimha Rao, and Atal Bihari Vajpayee. Under Narendra Modi's leadership, PSU reform has been further expanded, including the sale of Air India to Tata Group.
PSUs created by Congress govts in danger, as BJP 'busy selling' them: Jairam Ramesh
Ramesh, who is accompanying party leader Rahul Gandhi in his 'Bharat Jodo Naya Yatra' that reached Rajgangpur in Odisha's Sundergarh district, said this at a press conference. "Pandit Nehru created many public sectors in the country, but all of them are in danger today. PM Modi is busy selling these PSUs created by Congress, to his friends, but the Congress party will oppose it", he said.
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NDA govt has 'mad' policy of selling PSUs, even now attacks on Dalits going on in North India, says KCR at poll rally
During a political rally, Chief Minister K. Chandrasekhar Rao (KCR) of Telangana accused the Narendra Modi-led NDA government of having a "mad" policy of privatizing or selling Public Sector Undertakings (PSUs), including the Life Insurance Corporation (LIC).
Govt likely to invite financial bids for privatising NMDC Steel after commissioning blast furnace this month
Officials expect the value of the company to go up once the blast furnace of the steel plant becomes operational. NSL is expected to have a production capacity of 3 million tonnes per annum. The government holds a 60.79 per cent stake in NMDC Steel Ltd (NSL) after it got demerged from NMDC, which is India's largest iron ore producer.
Over 2 lakh jobs 'eliminated' from PSUs, govt 'trampling upon hopes of youth': Rahul
Former Congress President Rahul Gandhi has alleged that over two lakh jobs have been "eliminated" from Public Sector Undertakings (PSUs) in India, hitting out at the government for prioritising the interests of "crony capitalist friends" over job creation.
PSUs, auto could be set for better times ahead: Rajeev Thakkar, PPFAS MF
Export-oriented sectors, including IT services, may face a difficult period over the next six to nine months due to the weak economic environment in the Western world. However, the prices are coming down significantly, making it an opportune time for long-term investors to selectively invest in the sector. The PSU and commodity sectors, which have traditionally been avoided by investors, now show renewed focus on value creation and capital efficiency through government policies. The auto sector has shown signs of a cyclical upturn.
Dent in India’s aggressive privatisation plans is not unsettling New Delhi’s ambition
Most experts have termed the disinvestment targets as conservative. ICICI Research said the disinvestment targets are softer than anticipated, possibly on account of muted capital markets sentiments. In contrast, Prime Narendra Modi-led government has time and again said the government should not be in the business of doing business. It had set record disinvestment revenue targets in the past and went on to either sell part stake in key companies including LIC, or completing or announcing privatisation of state companies.
Proposed divestment of 8 fertiliser PSUs put on hold
The government is proposing to aggressively expand the domestic production of urea to cut imports by at least 30% by 2024. With green energy production likely to increase sharply, the government feels domestic production can be ramped up.
Some hits, many misses: Do India's disinvestment plans need a reset?
Prime Minister Narendra Modi's often-repeated statement 'the government has no business to be in business' guided the drawing up of an ambitious privatisation pipeline. While Air India sale succeeded, Bharat Petroleum Corporation Ltd (BPCL) divestment failed.
Fill up 14 lakh posts: CPI to Centre
"The CPI condemns the insensitive attitude of the BJP government towards social justice and unemployment and demands that the public sector be strengthened and expanded," the resolution added.
Ring-fencing privatisation: Bidders may soon have to give full legal disclosures
The move comes after a key constituent of the successful bidder for Pawan Hans received an adverse order from the Kolkata bench of the National Company Law Tribunal (NCLT). The transaction process had to be halted and a final call will now be taken on scrapping the bid or going ahead based on the legal opinion.
Centre makes renewed bid to complete privatisation of PSUs
Owing to pandemic-led disruptions, the process has been delayed for quite a long time now, therefore, the govt has decided to provide a fresh push to privatisation of state-run banks and insurance companies.
Disinvestment policy: Ending the struggle to freedom
Once the ball is set rolling, it is likely that significant resources will be raised through disinvestment, privatisation and asset sales over the next few years.
Most PSUs on govt's privatisation list created by private sector: Principal Economic Adviser Sanjeev Sanyal
Principal Economic Adviser Sanjeev Sanyal said that Finance Minister Nirmala Sitharaman has already outlined strategic and non-strategic sectors for the purpose of privatisation and there will be bare minimum presence of the government in the strategic sector.
Past losses of PSUs under strategic divestment can be set off: CBDT
The change in income tax law has been made in a bid to make strategic divestment of PSUs more attractive, said experts, since normally such a set-off is not permitted. The relaxation will be available, only till the strategic investor retains at least 51% in the PSU after take over.
PSUs to be allowed to carry forward losses accumulated prior to divestment: CBDT
This will make disinvestment deals of ailing PSUs more attractive for strategic investors. Under normal tax provisions without this relaxation, past losses of a company are not allowed to be set off, if there is change in majority shareholding of a company (i.e. 51 per cent).
Privatisation of PSUs not in national interest, will oppose Centre's policy: Tamil Nadu CM Stalin
The PSUs of India are public assets that are designed to nurture economic growth and provide job opportunities and these are also the bedrock of small and micro enterprises, Stalin said. "It is our view that selling or leasing PSUs are not in national interest," he said.
Privatisation of PSUs back on track after COVID-induced setback: DIPAM Secy
The mega initial public offering of LIC is expected by the end of the current fiscal, and the government is looking to collect Rs 50,000 crore as dividend from state-run companies. Stressing that privatisation of Air India, BPCL, Shipping Corp of India, Pawan Hans, BEML and Neelachal Ispat Nigam Ltd would be completed this year, Pandey said change of ownership and control would boost the valuations of these companies.
View: Policies that increase competition between banks can improve the lending standards of PSBs
f PSBs can reduce bad loans, and offer better deals to their good clients out of fear of losing them to the private banks, this will ultimately help the overall economy.
Should you buy PSUs only after privatisation? Vikas Khemani answers
We have a small opportunistic basket where we can end up investing in a PSU stock if needed but otherwise structurally we do not invest in PSUs unless they have changed hands, says the Founder, Carnelian Capital Advisors
Privatisation drive: Strategy to avoid accident along the execution line
PSUs are now no longer being viewed as critical to drive the economic and social agenda of the country.
Both centre and states need to cut fuel taxes, says FM Nirmala Sitharaman
“In the sense, even if there are one or two or three (PSUs)...it will be a public sector undertaking of a good solid presence,” Sitharaman said at a conference hosted by Indian Institue of Management, Ahmedabad.
The shape of India's selloff plan: 300+ PSUs may shrink to barely two dozen
The govt may reduce the number of public sector enterprises to just around two dozen, from over 300 at present, following the new policy that focuses on privatisation in non-core sectors, while shutting down loss making state-run enterprises.
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