The government not only approved reducing its stake below 51 per cent in specific CPSEs but also deferred pending spectrum auction payments for telecom operators for the years 2020-21 and 2021-22.
The approval paves the way for the government to sell 53.2 per cent of its stake in BPCL. But this will not include BPCL’s equity shareholding in Numalighar Refinery, which is based in Assam.
The government has also decided to approve 53.75 per cent stake sale in Shipping Corporation of India, 30.8 per cent in Container Corporation of India (CONCOR), to a strategic buyer, announced Finance Minister Nirmala Sitharaman at a press conference.
It has also decided to sell 74.34 per cent of THDC India and 100 per cent in North Eastern Electric Power Corporation Limited (NEEPCO) to state-owned NTPC.
Sitharaman said that the Cabinet has approved reducing the government’s stake in the aforementioned CPSEs below 51 per cent with the transfer of “certain management control”.
BIG RELIEF FOR AILING TELCOS
In what seems to be a big relief for ailing telecom service providers, the government also approved the recommendation of the Committee of Secretaries (CoS) on providing relief to stressed telecom operators as well.
The government has deferred pending spectrum auction payments for telecom operators for the years 2020-21 and 2021-22.
“In view of the current fin stress faced by major telecom service providers and in pursuant of the recommendations by Committee of Secretaries, it is decided to defer receipts of spectrum auction installments due from the TSPs from the years 2020-21 and 2021-2022,” Sitharaman said.
The deferred charges will now be equally spread over the remaining installments to be paid by telecom service providers without any increase in the existing time period specified for making the installment payment.
“The interest, as stipulated while auctioning the concerned spectrum, will, however, be charged so that NPV of the payable amount is protected. Telcos will continue to securitise next payable annual installment via bank guarantee,” Sitharaman added.
Among other things, Cabinet has also approved monetising NHAI projects and regularisation of unauthorised colonies in Delhi-NCR. The regularisation of these colonies will provide relief to approximately 40 Lakh people.
Prasanta Patnaik