Govt decides to sell its stake in chemical & fertilizer PSUs
New Delhi: In a major move aimed at expediting the sale of public sector enterprises in non-strategic sectors, the Centre's Ministry of Chemical and Fertilizers, led by Union minister Mansukh Mandaviya, has come out with a 'final' strategy to disinvest almost all PSUs functioning under the aegis of the ministry.
According to sources, the disinvestment of eight major PSUs under the Chemical and Fertilizer Ministry would be taken up in a phased manner while most of the closed-down public sector enterprises and in the process of revival may be handed over to private parties.
Sources further added that the government would be in a position to claim 'ownership' in any PSU as its share holding in any of the PSU would be below 49 percent.
The final decision in this regard has been after a recently held crucial meeting between the officials of the ministry and Niti Aayog – the think tank of the government. However, as per sources, a presentation has also been given to the Prime Minister's Office (PMO) in this regard.
However, the sources have maintained that the disinvestment plan would not have any impact on the fertilizer subsidy given to farmers. The ministry officials have estimated that fertilizer subsidy may go up to Rs 2.5 lakh crore in the current financial year 2022-23 from Rs 1.60 lakh crore in the year 2021-22. The ministry has also agreed in principle to sell all those fertilizer manufacturing PSUs that are in revival stage. As per the proposal, the units of Fertilizer Corporation of India's (FCIL) situated in Gorakhpur (UP), Sindri (Jharkhand), Talcher (Odisha) and Ramagundam (Telangana) are also in the ministry's disinvestment plan list.
As per the 'approved' proposal, the government would sale its stake from all eight major PSUs which include Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), Fertilizers and Chemicals Travancore (FCTL), FCI Aravali Gypsum and Mineral (FAGMIL), Madras Fertilizers Ltd (MFL), National Fertilizers Limited (NFL), Rashtriya Chemicals & Fertilizers (RCL), Fertilizer Corporation India Ltd (FCIL) and Hindustan Fertilizer Corporation Ltd (HFCL).
The net worth of NFL is around Rs 2,281 crore and the share of the government is 75 per cent, while the net worth of BVFCL is Rs 395 crore and share of the ministry is 100 per cent and in MFL, that has a net worth of Rs 505 crore, the Centre's share is 60 per cent. The net worth of 100 per cent government-owned FAGMIL is 251 crore and in the Rs 95 crore worth FCTL, the government share is 90 per cent.
As per the budget documents, the government has pegged its disinvestment target for financial year 2022-23 at Rs 65,000 crore.
