Govt's privatisation drive: Steps up sale of sick PSUs

It seems that the UPA government is departing from its state policy of 10% divestment in profit making public sector undertakings. This as the government is struggling to achieve its 4.6% fiscal deficit target, in the face of increasing oil and fertilizer subsidies.

If sources are to be believed the government has even started identifying loss-making PSUs that need a strategic investor. CNBC-TV18's Aakansha Sethi reports in detail. To begin with, the cabinet had last week approved privatisation of Scooters India. (Click here to know more about govt's exit from Scooters India) Sources from the government now indicate that it would initiate stake sale of Kolkata-based Tyre Corporation as well shortly. "The selection of bankers will happen soon," sources said. The government in 2007 had passed an act for divestment in the sick PSU. It is also being learnt that the cabinet may consider 100% sale in HMT Bearings (a subsidiary of HMT) soon. The cabinet note for the same is in inter-ministerial consultation.