India’s government is shedding 10 percent of its equity in mining companies Coal India Ltd. and Hindustan Copper Ltd.
New Delhi’s decision was welcomed by the Associated Chambers of Commerce and Industry of India, Orissadiary.com reported Wednesday.
ASSOCHAM Secretary-General D.S. Rawat said that the expected effect of the government’s partial divestment should assist the two enterprises in obtaining assistance from the private sector in procuring the necessary management and financial resources in order to make the two entities more commercially competition.
The government’s divestiture of a portion of its equity in its public sector undertakings has been under consideration for some time. Commenting upon the government’s partial disinvest of its stake in the two PSUs, Rawat noted that the timing was propitious as the Indian economy has successfully emerged from the recent global recession.
Rawat added that ASSOCHAM urged the government that the proceeds of the disinvestment should be used in sectors such as education, infrastructure and health that have a long term favorable economic impact.