The Centre’s Modi government has turned to privatization and wants to raise large sums of money by selling its stake in some public sector companies. The Modi government is opening the door for private players in many areas. Similarly, the government has sold 63.75 per cent stake in Shipping Corporation of India, a public sector company.
To meet the disinvestment targets for the financial year 2020-21, the Centre’s Modi government is now going to sell its 63.75 per cent stake in the public sector company Shipping Corporation of India (SCI). The government has invited bids from private companies and investors to buy 63.75 per cent stake in Shipping Corporation of India for privatization.
Companies can submit expressions of interest by February 13 to buy the government’s majority stack. Following the announcement of SSCI’s privatization, the stock market rose by 3.81 per cent.
The central government has set a target of raising Rs 2.10 lakh crore through disinvestment in the financial year 2020-21, but the government has so far managed to raise only Rs 11,006 crore by selling its stake in small companies. To meet the target, the government had earlier invited bids from BPCL and Air India to sell its stake in SCI. Now, private companies and investors have been invited to sell their stake in SCI. Bids for SCI can be submitted in person or through a consortium.
According to the current stock price of the Shipping Corporation of India, the market value of the company is Rs 4,000 crore. The stock market rose 3.81 per cent in the wake of SCI’s announcement of disinvestment. The share price reached 85.80 on Monday. In November last year, the Cabinet Committee on Economic Affairs approved the sale of SCI’s stock. But the delay was due to the Corona epidemic.
The government has sold 100 per cent stake in Air India and the Tata Group has expressed interest in buying it, while big companies like Adani are also in line to buy a stake in Air India.