Page 210 - DECO303_INDIAN_ECONOMY_ENGLISH

Unit 12: Privatisation and Economic Reforms

2001-02# 8 5632.25 Strategic sale of CMC - 51%, HTL -74%, VSNL - 25%, IBP Notes
- 33.58%, PPL-- 74%, and sale of hotel properties of ITDC
& HCI; receipt from surplus cash reserves from STC and
MMTC
2002-03# 8 3347.98 Strategic sale: HZL (26%), IPCL (25%), HCI, ITDC,
Maruti: control premium from renunciation of rights
issue, Put Option - MFIL (26%), Shares to employees in
HZL, CMC and VSNL.
2003-04 2 15547.41 Jessop & Co. Ltd. (72% Strategic Sale), HZL (18.92% Call
Option), through Public Offer-Maruti (27.5%), ICI Ltd.
(9.2%), IBP (26%), IPCL (28.945%), CMC (26.25%), DCI
(20%), GAIL (10.%) and ONGC (9.96%)
2004-05 3 2764.87 NTPC (5.25% Offer for Sale), IPCL (5% to Employees)
and ONGC (0.01%)
Total 47646.43

As per the Economic Survey 2001, the government set out the following policies towards PSUs:
1. Close down PSUs that cannot be revived
2. Re-structure the potential and viable PSUs
3. Bring down the government equity to 26% or lower

4. To protect the interest of the workers.
Table 12.3: Realisation through Strategic Sale during 1999-2000 to 2004-05

Sr. No. Name Percentage Realisation Profit/Loss
of ` in Crore Making
Government during the
Equity Sold Year of
Disinvestment
1.a Modern Food Industries (India) Ltd. 74 105.45 Loss Making
(MFIL)
1.b (MFIL) Phase II 25.995 44.07
2. Bharat Aluminium Co. Ltd. 51 826.92 ^ Profit Making
3.a CMC Ltd. 51 152 Profit Making
3.b CMC Ltd. @ 6.07
4. HTL 74 55 Profit Making
5. Lagan Jute Machinery Corporation 74 2.53 Loss Making
ITDC-19 HOTELS
6. Hotel Agra Ashok 89.97 3.61 Loss Making
7. Hotel Bodhgaya Ashok 89.97 1.81 Loss Making
8. Hotel Hassan Ashok 89.97 2.27 Loss Making
9. TBABR Mamallapuram 89.97 6.13 Loss Making
10. Hotel Madurai Ashok 89.97 4.97 Loss Making
11. Hotel Ashok Bangalore* 89.97 39.41 Loss Making
12. Qutab Hotel, New Delhi 89.97 34.46 Loss Making
13. Lodhi Hotel, New Delhi 89.97 71.93 Loss Making
14. LVPH, Udaipur 89.97 6.77 Loss Making
Contd...

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