New Delhi: After a delay of nearly two decades, the government’s CPSE privatization initiative took off with the Tata group’s purchase of debt-ridden national carrier Air India.
With Rs 18,000 crore to be paid for the purchase of ‘Maharaja’ of the new owner, this would be the highest amount of the total amount achieved through privatization or even strategic sale from 1999-00 to 2003-04 .
During a period of five years, the government received about Rs 5,000 crore from the privatization of ten CPSEs. In addition, three Hotel Corporation of India properties and 18 ITDC buildings were sold in bearish sales. Also read: Tata buys Air India: What will happen to AI employees after the acquisition? check here
Here are the timelines for strategic sale of Central Public Sector Enterprises (CPSEs) to private entities between 1999-00 to 2003-04.
1999-00: Modern Food Industries Ltd. Rs 105 crore
2000-01: BALCO, Lagan Jute Machinery Co. Ltd. Rs 554 crore
2001-02: Some hotel properties of VSNL, Computer Maintenance Corporation (CMC), Hindustan Teleprinters Limited (HTL), Paradip Phosphate Limited (PPL), HCI and ITDC? Rupee. 2,089 crore
2002-03: Hindustan Zinc Limited (HZL), Indian Petrochemicals Corporation (IPCL), some ITDC hotel assets Rs 2,335 crore
2003-04: HZL, Jessop & Co. Rs 342 crore
The government has sold majority ownership in several CPSEs to other public sector enterprises in the same industry.