In a CPSE-to-CPSE deal, the Centre will sell its entire stake in Kamarajar Port (KPL) to Chennai Port for a consideration of Rs 2,383 crore by March 31. Chennai Port will finance the purchase of the Centre’s 67% stake, partly through borrowings, an official said. The alternative mechanism (ministerial panel) had approved the contours of the transaction last week.
The KPL is an unlisted central public sector enterprise (CPSE), in which Chennai Port has been holding 33% shareholding. KPL is located on the Coromandel Coast about 24 km north of the Chennai Port. It is the 12th major port of India.
In other CPSE-to-CPSE deals, the Centre will be garnering around Rs 14,000 crore from NTPC’s purchase of the government’s entire stake in NEEPCO and THDC by the end of March. These deals and a few other small transactions would help the government garner up to Rs 55,000 crore, nearly Rs 10,000 crore short of the revised estimate of Rs 65,000 crore for FY20. So far in FY20, the disinvestment receipts stood at Rs 35,000 crore.
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