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Bharat Sanchar Nigam, MMTC, and Manganese Ore India are next on the government's divestment list, sources told CNBC-TV18. The government plans to divest all these three entities in the first quarter of next fiscal.

 

Manganese Ore's scheme of association needs to be amended to allow share sale, sources said.

 

According to sources, the government plans to divest 3-4 companies every quarter starting next fiscal. The Divestment Department is expected to write to the nodal min for an action plan. However, defence public sector undertakings, and banks are unlikely divestment candidates. CNBC-TV18's Aakansha Sethi reports.

 

Here is a verbatim transcript of Aakansha Sethi's comments on CNBC-TV18. Also watch the accompanying video.

 

BSNL, MMTC and Manganese Ore are next on the divestment list. Infact by the first quarter of next year, the government is targeting to divest stake in these companies. Now why Manganese Ore has been delayed so far is because that there is clause in its memorandum of association which says that there should be no sale of shares.

 

So that has been taken up with the Ministry of Corporate Affairs and it is in the process of being ammended. Also now the important piece of information is that in the next fiscal, the government is planning to divest stake in three to four companies every quarter.

 

Also in the process of disinvestment now, we have known that companies with the positive networth and with no accumulated losses and which have been profitable for the last three years will be divested.

 

So now the Department of Disinvestment is going to be writing to all the nodal ministries saying that they should create an action plan on which companies should be divested first after accessing the strength of the companies, how much capital they need, etc. Also, defence companies and banks are unlikely candidates for disinvestment. So that is the information that we are picking up from our sources right now.