Select Your Language

Disinvestment




The government has approved the reduction of stakes in Coal India Limited (CIL), NHPC, Oil and Natural Gas commission (ONGC), the shares of these companies fell by 3% to 5% on bourses, the fall in these stocks came amid the expectations that these issues will be available at a discount compared to the prevailing prices. Since the announcement of disinvestment the ONGC stocks have spiraled up to 8% while NHPC and CIL have lost out because when these issues will hit the market is not clear.  But one thing is clear that these stocks are still great long term bets, provided each company is treated on its merits, each stock has its own strengths and weaknesses .Certain things like the oil prices, reforms in gas prices, production boost up could prove to be a great booster for these companies.

Then there is resolute and focus on oil and coal production in spite of all pot holes. As the Supreme court has cancelled all the previous mining licenses so the coal ministry has done some contingency planning which aims at allocating 40 operational mines to Coal India Limited or to any other PSUs .Other coal blocks who have acquired land with due regulatory clearances and environmental NOCs , will have to be re auctioned just in case if their licenses are cancelled .


In context of the energy the investment expected is to the tune of 100 billion dollars during the next four years for renewable energy sector and almost same figure will pour in for power transmission and distribution system and solar power panel plants. All the above steps will lay the strong foundation and for the infrastructure to grow at a brisk pace in the coming months.