New Delhi, June 22 (IANS) The government on Monday trashed reports that it was planning an offer for sale of shares in Cochin Shipyard Ltd as part of the disinvestment programme.
“No stake sale is planned in Cochin Shipyard at present,” a Finance Ministry official said,
The clarification came after media reports, citing sources, said the Centre was considering an offer for sale (OFS) of a 6 per cent to 8 per cent stake in Cochin Shipyard. The reports said the transaction could raise more than Rs 16,000 crore, depending on the size of the issue and pricing.
As per the latest shareholding pattern, the government has a 67.91 per cent stake in Cochin Shipyard, while the Life Insurance Corporation of India owns a 3.34 per cent stake with 87.74 lakh shares.
An offer for sale is a route commonly used by the government to reduce its holdings in listed public sector enterprises and increase public shareholding.
The denial also comes at a time when the government has raked in higher disinvestment collections during the first quarter of FY27.
Stake sales in Coal India, NHPC, NLC India, Central Bank of India, and General Insurance Corporation of India have helped the Centre mobilise close to Rs 14,000 crore through disinvestment during the quarter so far. The total is expected to rise further after pending proceeds are accounted for.
The government’s disinvestment receipts are set to cross Rs 15,000 crore in the April-June quarter, strengthening non-tax capital receipts and supporting its FY27 fiscal deficit target.
The collections highlight the role of non-tax capital receipts as the government manages spending commitments. Higher proceeds from stake sales and asset monetisation strengthen the Centre’s fiscal position, particularly at a time when the subsidies on fertilisers and petroleum products have shot up due to the West Asia crisis.
The government’s FY27 asset monetisation programme targets receipts of Rs 80,000 crore and includes the strategic disinvestment of IDBI Bank, alongside minority stake sales in select public sector enterprises.
Further dilution in certain state-owned companies, including Life Insurance Corporation of India, remains a medium-term option.
The Centre has mobilised Rs 21,732.23 crore through non-tax capital receipts in FY27 so far. Disinvestment receipts contributed Rs 13,389.42 crore, while asset monetisation generated Rs 6,366.93 crore. Dividend receipts stood at Rs 1,975.88 crore.
–IANS
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