20 years later: India's CPSE privatisation off to ‘Maharaja' start

| | New Delhi
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20 years later: India's CPSE privatisation off to ‘Maharaja' start

Friday, 28 January 2022 | PTI | New Delhi

After a hiatus of nearly two decades, the Government's programme to privatise state-owned firms restarted with the handing over of debt-laden national carrier Air India to the Tata Group.

With the new owner shelling out Rs 18,000 crore for the buyout of the 'Maharaja', this would be the highest-ever amount garnered through privatisation, and is even more than the cumulative sum mopped up through strategic sales from 1999-00 to 2003-04.

The Government had in October last year inked the share purchase agreement with the Tata Group for sale of national carrier Air India for Rs 18,000 crore.

Tatas would pay Rs 2,700 crore cash and take over Rs 15,300 crore of the airline's debt. The deal also includes sale of Air India Express and ground handling arm AISATS.

The government had garnered roughly over Rs 5,000 crore during that five-year period by privatising 10 CPSEs. Besides, three hotel properties of Hotel Corporation of India and 18 of ITDC were also sold off by way of slump sale.

Here is a timeline of 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 crore2000-01 - BALCO , Lagan Jute Machinery Co Ltd -- Rs 554 crore 2001-02 - VSNL, Computer Maintenance Corporation (CMC), Hindustan Teleprinters Ltd (HTL), Paradeep Phosphate Ltd (PPL), some hotel properties of HCI and ITDC -- Rs 2,089 crore 2002-03 - Hindustan Zinc Ltd (HZL), Indian Petrochemicals Corporation (IPCL), some ITDC hotel properties -- Rs 2,335 crore 2003-04 - HZL (second tranche), Jessop & Co -- Rs 342 crore.          

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