NHPC, OIL offers slated for this year; RITES issue deferred

The government would dilute its holding in NHPC Ltd and Oil India Ltd through an initial public offer in the current financial year, but would defer a public issue of RITES Ltd, finance minister Pranab Mukherjee told Parliament today.

Pranab Mukherjee The government has also approved disinvestment in two loss-making companies - Tyre Corporation of India Ltd and Central Inland Water Transport Corporation Ltd - Mukherjee told the Rajya Sabha in a written reply.

On RITES, he said, "The public offer of RITES Ltd has been deferred for the present by the company due to change in capital requirements of the company." He said NHPC Ltd, Oil India and RITES Ltd had proposed to make public offerings of their equity.

The government has decided to disinvest a small portion of equity out of its shareholding in these companies in conjunction with their public offerings, the finance minister added.

"While considering the recommendations of the board for reconstruction of public sector enterprises for revival, restructuring of loss making TCIL and CIWTC, the government approved disinvestment of two companies," Mukherjee said.

Mukherjee said he has initiated talks with other ministries to identify PSUs where a portion of government equity could be sold and that details would be announced soon.