NEW DELHI: Continuing with its ambitious divestment plans, the government is planning to list three public sector units (PSU) in the markets by the end of October. The three PSUs that will make Initial Public Offerings (IPO) are National Seeds Corporation, Telecom Consultants India Limited (TCIL) and FCI Aravali Gypsum and Minerals India Limited (FAGMIL).
“As indicated by the government, we are planning to come up with the IPO of three PSUs, to start with, by the end of October this year. This will include National Seeds Corp, TCIL and FAGMIL. We are expecting to raise Rs 300 crore to Rs 500 crore from these. We will appoint a consultant for the same in August,” a senior official from the Department of Investment and Public Asset Management (DIPAM) said.
National Seeds Corporation is a miniratna company wholly owned by the Government of India under the aegis of Ministry of Agriculture and Farmers Welfare. TCIL, a prime engineering and consultancy company, is a wholly owned GoI PSU under the administrative control of the Department of Telecommunications (DoT). FAGMIL, meanwhile, was incorporated under the Companies Act, 1956 as a PSU in 2003 after being hived off the Jodhpur Mining Organisation of Fertilizer Corporation of India Ltd.
The official, however, said that the IPO of WAPCOS, a miniratna under the Union Ministry of Jal Shakti, is likely to be delayed due to some legal hassles. The government has also completed two IPOs of Mazagon Docks and MSTC. In last two years, divestment proceeds from DIPAM have comprised a significant part of non-tax revenue for the Centre. A higher receipt from disinvestment is crucial since the indirect tax collection target has remained below expectations, due to lower than expected GST collections.