India Inc welcomes CCEA's decision to disinv REC, PGCIL, NHPC

New Delhi, Feb 8 (UNI) India Inc has welcomed the Cabinet's decision to disinvest part of its holding in Rural Electrification Corporation (REC), Power Grid Corporation of India Ltd (PGCIL), National Hydroelectric Power Corporation (NHPC) through IPOs.

The Cabinet Committee on Economic Affairs (CCEA) today gave its approval for sale of 10 per cent pre-issue paid up equity of REC and five per cent each of PGCIL and NHPC.

Commending the CCEA's move, the Federation of Indian Chambers of Commerce and Industry (FICCI) said the amount government is planning to raise through the announced disinvestment programme is rather meager and more disinvestment is needed.

''Government holdings in listed PSUs is huge. Given the current phase in the market, government should come out with an ambitious disinvestment programme to unlock at least part of this massive wealth in government companies,'' it said in a statement.

Highlighting the price growth that Maruti's scrips have witnessed after its disinvestment, the chamber said the disinvestment programme would give bellwether scrips to the Indian capital market.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) President Venugopal N Dhoot said the message gone out of this decision will be far greater to strengthen the stock markets than generating revenues.

UNI