Page 209 - DECO303_INDIAN_ECONOMY_ENGLISH

Indian Economy

Notes 1998-99 5000 5,371
1999-2000 10,000 1,829
2000-01 10,000 1,869
2001-02 12,000 5,632
2002-2003 12,000 3,342
2003-04 14,500 12,742
2004-05 4,000 2,700

Source: ET Survey March 2003, Figures in `Crore
Government stakes in 48 companies have been sold in fluctuating degrees since 1991-92-2004-05,
summarised in the table above. In most of these cases, the government sold only a minority
stake, but it also included an effective transfer of control and management to private entities
(privatisation).

Example: The prominent companies to be privatised were: Modern Foods, BALCO,
CMC, VSNL, IBP, ITDC Hotels, Maruti.
CPSE-wise Disinvestment

The following table indicates the actual disinvestment from 1991-92 to 2004-05. The
methodologies accepted for such disinvestment and the extent of disinvestment in various
CPSUs:

Table 12.2: Disinvestment Methodologies from 1991-92 to 2004-05

Year No. of Total Methodology
transactions receipts
in which (` in crore)
equity sold
1991-92 47 3037.74 Minority shares sold in Dec 1991 and Feb 1992 by
auction method in bundles of "very good", "good" and
"average" companies
1992-93 29 1912.42 Shares sold separately for each company by auction
method.
1993-94 – 0.00 Equity of 6 companies sold by open auction but
proceeds received in 94-95.
1994-95 17 4843.10 Sale through auction method, in which NRIs and other
persons legally permitted to buy, hold or sell equity,
allowed to participate.
1995-96 5 168.48 Equities of 4 companies auctioned
1996-97 1 379.67 GDR (VSNL) in international market.
1997-98 1 910.00 GDR (MTNL) in international market.
1998-99 5 5371.11 GDR (VSNL)/Domestic offerings with the participation
of FIIs (CONCOR, GAIL). Cross purchase by 3 Oil sector
companies i.e. GAIL, ONGC & IOC
1999-00 5 1860.14 GDR-GAIL, VSNL-domestic issue, BALCO
restructuring, MFIL's strategic sale and others
2000-01 5 1871.26 Strategic sale of BALCO, LJMC; Takeover - KRL (CRL),
CPCL (MRL), BRPL
Contd...

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