Govt looking at stake sale in Rail infra companies

Tags: Companies
The government is planning to offload its stake in certain profit-making infrastructure companies of Indian Railways, a move that will help such companies to get listed on stock exchanges as well as raise funds for exchequer.

"We are in talks with the Railway Board for sale of government equity in certain PSUs managed by Indian Railways, a source told PTI.

There are about half a dozen companies which are managed by Indian Railways. These include RITES, IRCON, IRFC, IRCTC, and RailTel Corporation.

Since these companies are not listed it is likely that the initial public offer (IPO) will be accompanied by government offloading its stake.

Indian Railways, which is facing cash crunch, is looking at various ways to mobilise resources for undertaking its expansion programme.

Government has already pitched for reforms in Railways by proposing Foreign Direct Investment and Public Private Partnership (PPP) to meet the resource crunch.

"The disinvestment will be a part of the government exercise to engage private players in ancillary services as part of overall agenda," the source added.

The Finance Ministry plans to raise Rs 43,425 crore through disinvestment in PSUs in the current fiscal.

A host of companies have been lined up by the disinvestment department as candidates for stake sale. These include SAIL, NHPC, ONGC, REC and PFC.

EDITORIAL OF THE DAY

  • Mergers apart, Sebi must also allow fund houses to offer diverse products

    The Securities and Exchange Board of India’s (Sebi’s) reported push for merger of open-ended mutual fund schemes is a logical step, as there is li

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Arun Nigavekar

Can Hefa actually become a reality?

The ministry of human resource development (MHRD) is actively wo­rking ...

Rajgopal Nidamboor

Creativity is that divine luminosity

Creativity or ingenuity, isn’t a licence limited to ‘functioning’ minds ...

Dharmendra Khandal

No one's getting rich overnight by poaching

We often read in newspapers that tiger skin worth Rs ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture