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    Fertiliser stocks rally after report says government planning to divest stake in PSUs

    Fertiliser stocks rally after report says government planning to divest stake in PSUs

    Fertiliser stocks rally after report says government planning to divest stake in PSUs
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    By CNBCTV18.com  IST (Updated)

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    According to a report, the government has identified eight public sector undertakings (PSUs) within the sector for divestment.

    Shares of major fertiliser companies traded in the green on Wednesday after a report said the government has identified eight public sector undertakings (PSUs) within the sector for divestment.
    According to a Moneycontrol report published on Tuesday, the eight PSUs identified for the stake sale are Rashtriya Chemicals & Fertilizers (RCF), National Fertilizers (NFL), Brahmaputra Valley Fertilizer Corporation (BVFCL), FCI Aravali Gypsum and Mineral (FAGMIL), Madras Fertilizers (MFL), Fertilizer Corporation India (FCIL), Fertilizers and Chemicals Travancore (FACT), and Hindustan Fertilizer Corporation (HFCL).
    The report said that a proposal for the stake sale was discussed in a meeting of the Core Group of Officers headed by NITI Aayog CEO a few days ago. While most members in principle agreed with the plan, the final decision is awaited, it added.
    Rashtriya Chemical and Fertilizers settled 1.43 percent higher while National Fertilizers was up 0.77 percent at the close. Gujarat State Fertilizers and Chemicals ended 1.09 percent higher while Chambal Fertilizers and Chemicals is up 0.19 percent.
    Fertilizers and Chemical Travancore hit a three-month high of Rs 132 in early trade and settled 1.07 percent higher at Rs 127 per share.
    By privatising or closing public sector enterprises in non-strategic sectors such as fertiliser, steel, and tourism, the government intends to exit these sectors.
    Under the new Public Sector Enterprises (PSEs) Policy announced by the government in 2020, the fertiliser sector will be the first to be privatised if the government goes ahead with its divestment plans.
    Last month, the government announced that all subsidised fertilisers including urea and DAP will be sold under the single brand 'Bharat' from October, a move aimed at ensuring timely availability of soil nutrients to farmers and reducing the freight subsidy.
    Announcing the new initiative 'One Nation One Fertiliser' under the fertiliser subsidy scheme 'Pradhanmantri Bhartiya Janurvarak Pariyojna (PMBJP)', Chemicals and Fertilisers Minister Mansukh Mandaviya said the companies are allowed to display their name, brand, logo and other relevant product information only on one-third space of their bags.
    On the remaining space, he said the 'Bharat' brand and PMBJP logo will have to be shown. The companies have been given time till year-end to clear their old stock.
    In the last financial year, the central government incurred a fertiliser subsidy bill of Rs 1.62 lakh crore. In view of a sharp rise in global prices in the last five to six months, the government's subsidy bill is estimated to rise to Rs 2.25 lakh crore in the current fiscal.
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