Tuesday, 22 July 2014

Government looking at stake sale in Rail infrastructure companies .

The government is planning to offload its stake in certain profit-making infrastructure 

companies of Indian Railways, a move that will help such companies to get listed on stock 

exchanges as well as raise funds for exchequer. "We are in talks with the Railway Board for 

sale of government equity in certain PSUs managed by Indian Railways, a source told PTI.

There are about half a dozen companies which are managed by Indian Railways. These include :- 
 RITES,
 IRCON,
 IRFC,
 IRCTC,  
RailTel Corporation. 

Since these companies are not listed it is likely that the initial public offer ( IPO) will be accompanied by government offloading its stake.

Indian Railways, which is facing cash crunch, is looking at various ways to mobilise resources for undertaking its expansion programme. 
Government has already pitched for reforms in Railways by proposing Foreign Direct Investment and Public Private Partnership (PPP) to meet the resource crunch.


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