New Delhi, Aug 3 : The transaction process is on for strategic sale of 21 central public sector enterprises (CPSEs), their subsidiaries, or units while four companies have been approved for closure.

Transaction in case of two companies — Hindustan Newsprint Ltd (subsidiary) and Karnataka Antibiotics & Pharmaceuticals Ltd remains held up due to litigation, as per reply to a question in Rajya Sabha.

“Government has been following a policy for strategic disinvestment of CPSEs since 2015-16 and has ‘in-principle approved strategic disinvestment of 35 CPSEs and/or subsidiaries/ units/ Joint Ventures of CPSEs with sale of majority stake and transfer of management control. Some of these ongoing transactions are intended for privatization,” said Minister of State (MoS) for Finance Bhagwat Krishnarao Karad in a written reply.

As per the list of CPSEs in which the government has decided to sell its equity stakes and the transaction process underway includes Air India (100 percent), Shipping Corporation of India (63.75per cent), Container Corporation of India (30.80per cent), BEML Ltd (26 percent), Pawan Hans Ltd (51 percent), Central Electronics Ltd (100 percent) and Ferro Scrap Nigam Ltd (100 percent).

Various units of India Tourism Development Corporation Ltd (ITDC) are also on the blocks.

The companies for which transaction has been halted and their closure has been instead recommended are Hindustan Fluorocarbons Ltd (subsidiary), Scooters India Ltd, Bharat Pumps & Compressors Ltd, and Hindustan Prefab Ltd.

Transaction for as many as 8 CPSEs has been completed as part of the government’s disinvestment plan.

In February this year, the central government announced a new Public Sector Enterprise Policy which lays down a broad roadmap for PSEs.

The policy delineates four broad strategic sectors, in which except for the bare minimum presence of the existing public sector commercial enterprises at the holding company level to be retained under government control, other remaining enterprises will be considered for privatization or merger/subsidization with another PSE or for closure.

“PSEs in non-strategic sectors shall be considered for privatization, where feasible, otherwise such enterprises shall be considered for closure,” MoS Karad said. (UNI)