Divestment Policy in India: Modi government on the way to privatize another government agency! The process starts next week – mssewb.org

Disinvestment Shipping Corporation: Protests continue. However, the Center has taken a step forward in the process of privatization of another government agency. This time Shipping Corporation of India will be privatized. According to sources, his process will start from next week.

The government’s shareholding in the state-owned Shipping Corporation of India (SCI) will be transferred to the private sector. Shareholding held by Govt is 63.75%. A roadshow is also planned for next week.
Although the workers’ organizations have come to the event in opposition to it. Not only them, a section of the management also opposed this privatization worth Rs 1000 crores.

According to central government sources, a high-level meeting was held on December 29 regarding this privatization. Union Corporate Affairs Ministry officials held a meeting on this ‘demerger’.

According to the decision taken in the meeting, the ministry has sought a report from the company explaining the reasons for the opposition of the workers union, a section of the management. If the report is satisfied, the disinvestment process will start next week. The share price of Shipping Corporation of India rose sharply on Monday after the news of this privatization was published. An increase of about 5.4% in one day. As a result, the price of government shares in the company reached 4250 crores.

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According to ministry sources, the ‘Department of Investment and Public Asset Management’ (DIPAM) tender process will begin once the issue of opposition to privatization is resolved. But before that, the center wants to solve the problem. So as not to get into any legal trouble in the future. In the words of a top official of DIPAM, ‘steps are being taken cautiously from all sides, so that the whole plan does not get stopped in the middle due to legal complications.’

Incidentally, on May 6, 2022, the company’s board meeting accepted the liquidation proposal. It was there that the decision was taken to transfer the property worth Rs.1000 crores of the company. According to sources, this amount will be spent on infrastructure development and maintenance of the company’s headquarters ‘Shipping House’ and Maritime Training Institute in Mumbai.

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Incidentally, Lok Sabha elections next year. Before that, the center wants to walk slowly on the path of privatization. But the implementation of all the decisions that have already been taken will be completed, sources said.

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