Govt announces relief for ailing telcos, approves divestment of 5 PSUs including BPCL

[Sachin200]

HIGHLIGHTS

• Cabinet gives in-principle approval for sale of its stake in five CPSEs
• Government to sell 53.2 per cent of its stake in BPCL
• Relief for telcos as govt also deferred pending spectrum auction payments for 2020-21 and 2021-22

 

The Narendra Modi-led government on Wednesday gave in-principle approval for the sale of its stake in five Corporate Public Social Enterprises (CPSEs), including Bharat Petroleum Corporation Limited (BPCL), Shipping Corporation of India and Container Corporation of India.

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.

[Sachin200]

Calling @prasadr , telecom ni 3 months lo pay cheyamante two years ki defer chesaru 

[Android_Halwa]

And after these two years, malla edo oka rakanga defer cheyamantaru

anduke India la evadiki kuda chance iyodhu, ioudu telcos ni chusi inko sector gallu adugutaru...Airlines ollu Line la nilabaddaru maaku emi istav ani...

2008 la antha financial crisis lo kuda government okadiki oka rupai kadu kada defer kuda ivaledu...ipudu okadini chusi inkokadu Line kadtadu

[Sachin200]

27 minutes ago, Android_Halwa said:

And after these two years, malla edo oka rakanga defer cheyamantaru

anduke India la evadiki kuda chance iyodhu, ioudu telcos ni chusi inko sector gallu adugutaru...Airlines ollu Line la nilabaddaru maaku emi istav ani...

2008 la antha financial crisis lo kuda government okadiki oka rupai kadu kada defer kuda ivaledu...ipudu okadini chusi inkokadu Line kadtadu

not a good idea to defer . Court 90 days andhi and atleast they should have implemented this . Not sure how much Interest will be . Hope it's not 1% or so 😂

[crashnburn]

lol. The losers that are governing India.

[Sachin200]

1 minute ago, crashnburn said:

lol. The losers that are governing India.

Expected