Government may divest in National Textile Corporation

30 Mar '17

1 min read

The Indian government may disinvest in the National Textile Corporation owing to Niti Aayog's recommendation of immediately staking sales in twelve central public sector enterprises (CPSEs). The move needs to be approved by the Cabinet Committee on Economic Affairs and will then be started by the department of investment and public asset management (DIPAM).

Niti Aayog has suggested strategic sales in more than 40 CPSEs in the last few months. The government of India will continue to push for strategic sales of loss-making CPSEs, an official told a leading daily.

The government aims to raise Rs 72,500 crore by disinvestment in FY18 as compared to FY17's revised estimate of Rs 45,500 crore. The target for FY18 will be achieved by raising Rs 15,000 crore via strategic stake sales, Rs 46,500 crore via minority stake sales and Rs 11,000 by listing of insurance companies.

Meanwhile, the National Textile Corporation is slated to get Transfer of Development Rights (TDR), that is, compensatory floor space index instead of Indu Mills land. As per the TDR policy, the Corporation will get 2.5 times the FSI for the surrendered land. (KD)

Fibre2Fashion News Desk – India

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