Major Achivements

S.No. Month Achievements
1 April 2019
  1. Completed Transactions during April 2019: (i) Rail Vikas Nigam Ltd. was listed in the stock exchange in April, 2019 and fetched an amount of Rs. 475.89 crore. (ii) Sale of Enemy Shares: This transaction fetched an amount of Rs. 1,875.37 crore in April, 2019.
  2. Important meetings during the month: (i) A presentation on proposed structure of Debt ETF was made by the AMC on 15.04.2019. (ii) An Inter-ministerial Group (IMG) meeting was held on 15.04.2019 regarding engagement of Advisor/ Consultant for Merger/ Acquisition of Insurance Companies.
  3. Progress of Important Strategic Disinvestment Cases during the month:(i) Project & Development India Ltd.: First meeting of the Evaluation Committee (EC) held on 5.4.2019 to consider the revised Expression of Interest (EoI) and Preliminary Information Memorandum (PIM). A review meeting was held in DIPAM on 11.4.2019 to expedite the process. (ii) Pawan Hans Ltd. (PHL): Core Group of Secretaries on Disinvestment (CGD) in its meeting held on 16.04.2019 recommended issue of fresh EoI and PIM in this case. (iii) Bharat Pumps & Compressors Ltd. (BPCL): Virtual Data Room (VDR) has been opened to the bidders. Share Purchase Agreement (SPA) was shared with QIBs on 29.03.2019.(iv) Central Electronics Ltd. (CEL): Draft SPA, referred to M/o Law, has been vetted. Approval of Alternative Mechanism (AM) is awaited. (v) Bharat Earth Movers Ltd. (BEML Ltd.): The due diligence process has been undertaken by the Ministry. CGD note prepared on the recommendations of D/o Defence Production submitted for consideration of CabinetSecretariat on 8.4.2019. Clarification on land use in case of BEML is being sought from D/o Defence Production. (vi)HLL Life Care.: The Ministry has been advised to process for demerger of subsidiaries and provide inputs on PIM. A review meeting was held in DIPAM on 11.04.2019 to expedite the process. (vii) Indian Medicines Pharmaceutical Corporation Ltd. (IMPCL): PIM/ EoI was issued on 13.04.2019. Last date of receiving EoI is 18.05.2019.
  4. International / Domestic Road-Shows during April, 2019: International Road-shows were held in London and Paris from 8th to 11th April, 2019 to explore possibilities of launching an offshore ETF.
2 March 2019
  1. 1. Against the budget estimate (BE) for disinvestment of Rs. 80,000 crore for 2018-19, through efficient investment management in CPSEs, the Government could realize Rs. 84,971 crore. A. Completed Transactions during March 2019: (i) Oil India Ltd. (OIL): The buyback offer of OIL from 15.2.2019 to 1.3.2019, fetched an amount of Rs.720.80 crore. (ii) Coal India Ltd. (CIL): Government of India realized an amount of Rs.1039.71 crore from the buyback of CIL shares.(iii) CPSE ETF FFO 4: The Further Fund Offering - 4 of CPSE ETF was launched from 19th to 22nd March, 2019. Government of India realized an amount of Rs. 9,350.07 crore from this transaction. (iv)National Projects Construction Corporation Ltd. (NPCC): Government of India realized an amount of Rs. 79.80 crore from the strategic sale of NPCC to WAPCOS. (v) MSTC Ltd.: MSTC Ltd. was listed on 29.3.2019 through IPO route. Government of India realized an amount of Rs.210.60 crore from this transaction. (vi) Dredging Corporation of India Ltd. (DCIL): Government of India realized an amount of Rs.1049.17 crore from the sale proceeds of strategic disinvestment of DCIL. (vii) NMDC Ltd.: Government of India realized an amount of Rs.768.78 crore from the buyback of shares of NMDC. (viii) PFC-REC Deal: PFC bought the 52.63% stake of Government of India in REC at a value of Rs. 14499.99 crore.
  2. B. Important meetings during the month: (i) The Cabinet Committee on Economic Affairs in its meeting held on 7.3.2019 approved the following delegation of power to the Alternative Mechanism (AM) in all cases of strategic disinvestment of CPSEs as under: (a) The quantum of shares to be transacted, mode of sale and final pricing of the transaction or lay down the principles/ guidelines for such pricing; and the selection of strategic partner/ buyer; terms and conditions of sale; and (b) To decide on the proposals of CGD with regard to the timing, price, the terms & conditions of sale, and any other related issue to the transaction. (ii)The Union Cabinet had approved the proposal of DIPAM on Laying down procedures & mechanism for Asset Monetisation of CPSEs/PSUs/other Govt. organisations and Immovable Enemy Property on 28.2.2019. C. Progress of Important Strategic Disinvestment Cases during the month: (i) Hindustan Prefab Ltd. (HPL): Alternative Mechanism approved closure of HPL to be initiated by Ministry of Housing & Urban Affairs.(ii) Central Electronics Ltd. (CEL): Draft SPA was considered and approved by CGD on 18.3.2019. Thereafter, the draft SPA has been referred to M/o Law for legal vetting.(iii) Cement Corporation of India Ltd. (CCI): Expression of Interest / Preliminary Information Memorandum (EoI/PIM) approved by Department of Heavy Industry and EoI / PIM published on 2.3.2019.(iv) Bharat Pumps & Compressor Ltd.: Share Purchase Agreement shared with QIBs on 29.3.2018. D. International / Domestic Road-Shows during March, 2019: Domestic Road-shows were held in Mumbai in respect of Rail Vikas Nigam Ltd. The IPO was launched on 29.32019.
  • Current Year 2019-20 Target and Achievement

    Sl.No. Financial Year Target (In Rs. Crore) Achievement (In Rs. Crore)
    1. 2019-20 90,000 23,50.25

    Last 8 years Targets and Achievements

    Sl.No. Financial Year Target (In Rs. Crore) Achievement (In Rs. Crore)
    1. 2011-12 40,000.00 13,894
    2. 2012-13 30,000.00 23,957
    3. 2013-14 40,000.00 15,819
    4. 2014-15 43,425.00 24,349
    5. 2015-16 41,000.00 (excluding strategic disinvestment of Rs. 28,500 crore) 23,997
    6. 2016-17 56,500 (including Rs. 36,000 crore as disinvestment of CPSEs and Rs. 20,500 crore from strategic disinvestment) 46,246.58 (including Rs. 35,467.87 crore from disinvestment of CPSEs and Rs. 10,778.71 crore from disinvestment of strategic holdings and income from management of SUUTI investment)
    7. 2017-18 1,00,000 1,00,056.91
    8. 2018-19 80,000 84,972.16


    Budget Announcements and Implementation Status, 2018-19

    Sl.No. Para No. Text of Announcement Status of Implementation
    1. 102 The Government and market regulators have taken necessary measures for development of monetizing vehicles like Infrastructure Investment Trust(InvIT)and Real Investment Trust(ReITs) in India. The Government would initiate monetizing select CPSE assets using InvITs from next year. The Department is preparing a draft Institutional Framework for asset monetisation of CPSEs.
    2. 123 The Government has approved listing of 14 CPSEs, including two insurance companies, on the stock exchanges. The Government has also initiated the process of strategic disinvestment in 24 CPSEs. This includes strategic privatization of Air India. (i) Out of these, ONGC-HPCL deal has been completed during FY 2017-18. Strategic disinvestment process of 23 CPSEs/ units of CPSEs are in different stages of implementation.
    (ii) For Air India, EoI/PIM was issued on 28.03.2018. No bids were received.
    3. 125 The Government introduced Exchange Traded Fund Bharat-22 to raise Rs. 14,500 crore, which was over-subscribed in all segments. DIPAM will come up with more ETF offers including debt ETF. (i) Hon’ble Finance Minister has approved the constitution of Inter Ministerial Group (IMG) for appointment of one Advisor, one Market Maker and one Legal Advisor for creation, launch and implementation of Debt ETF.

    (ii) IMG has approved the Request for Proposal (RFP) for the appointment of Advisor. RFP for appointment of Advisor has been floated for inviting bids from interested parties.

    Budget Announcements and Implementation Status, 2017-18

    Sl.No. Para No. Text of Announcement Status of Implementation
    1. 104 The shares of Railway PSEs like IRCTC, IRFC and IRCON will be listed in stock exchanges. (i) Intermediaries like Book running Lead Managers, Legal Advisors, Registrars and Auditors have been appointed.
    (ii) Due diligence by BRLMs and the CPSEs is in progress.

    Under Implementation

    2. 103 Listing of Public Sector enterprises will foster greater public accountability and unlock the true value of these companies. The Government will put in place a revised mechanism and procedure to ensure time bound listing of identified CPSEs on stock exchanges. The disinvestment policy announced by me in the last budget will continue. As announced in the Budget, 2017-18, the government has put in place a mechanism/procedure along-with indicative timelines for listing of CPSEs on 17.02.2017. The Administrative Ministries/ Departments have been requested to follow the suggested timelines and to complete time-bound listing of identified CPSEs, as per the extant Acts, Rules and Regulations.

    Implemented

    3. 106 Our ETF, comprising shares of ten CPSEs, has received overwhelming response in the recent Further Fund Offering (FFO). We will continue to use ETF as a vehicle for further disinvestment of shares. Accordingly, a new ETF with diversified CPSE stocks and other Government holdings will be launched in 2017-18. (i) As announced in the budget 2017-18, the New Fund Offer (NFO) of BHARAT 22 was opened for subscription from November14, 2017. It was oversubscribed in all segments of investors, such as, anchor investors, retirement funds, retail investors and others, i.e. QIB/HNI. Over 3.30 lac applications were received from investors.

    (ii) While the anchor segment was oversubscribed by 6 times, the total book for the offer was approximately 4 times oversubscribed. Inflows under the FIIs category to the issue were over US$ 1.5 bn (Rs. 10,000 crore).

    (iii) In order to satisfy the demand from large number of investors, especially from the retail and the retirement fund category the Government has decided to retain a portion of the oversubscription by increasing the issue size of the offer to Rs. 14,500 crore.

    Implemented