Government Approves Sale of 10% Stake in HAL

[ashok321]

http://www.news18.com/news/business/government-approves-sale-of-10-stake-in-hal-1533535.html

New Delhi: The government has approved the sale of 10 percent stake in Hindustan Aeronautics Limited (HAL), a defence Public Sector Undertaking, it was announced here on Sunday.

As part of the procedure, HAL had initiated the process of initial public offering with the filing of the Draft Red Herrring Prospectus (DRHP) on September 29 with market regulator Securities and Exchange Board of India.


"This is a major milestone towards listing of the defence PSU which is slated for partial disinvestment by the Government of India," said T. Suvarna Raju, Chairman and Managing Director of HAL.

 

[Skull and Bones]

100% of it should be divested.

 

[jetray]

100% of it should be divested.

good luck with labor unions.

 

[Papa Dragon]

I wonder if these labor unions will allow the sale of even 10%. If possible, majority stake should be sold to private players as all these HAL employees do is to drink gallons of tea everyday over useless conversations while the top brass makes millions in profit by diverting those funds provided to HAL

 

[kris]

I wonder if these labor unions will allow the sale of even 10%. If possible, majority stake should be sold to private players as all these HAL employees do is to drink gallons of tea everyday over useless conversations while the top brass makes millions in profit by diverting those funds provided to HAL

See all they care about is their own interests

As disinvestment process in India takes years, by that time they accept the reality and come to negotiate

 

[duhastmish]

why sell 10% is it for money generation?

why not stand a parallel organisation fully private.

 

[kris]

why sell 10% is it for money generation?

why not stand a parallel organisation fully private.

How fast can such infra be built?
Most important- what to do with existing one?

 

[duhastmish]

How fast can such infra be built?
Most important- what to do with existing one?

Keep em. You can’t ruin it.

We can have two agency running separately. Once we realise worth or worthlessness of other. Kick them and sell it or don’t buy from it.

10% is nothing it’s not to do with employers but the employees.

 

[Chhatrapati]

Keep em. You can’t ruin it.

We can have two agency running separately. Once we realise worth or worthlessness of other. Kick them and sell it or don’t buy from it.

10% is nothing it’s not to do with employers but the employees.

It's not an economically viable option.

You need billions of dollars to make these. While HAL is a very old company. It has all the experience. Full privatization is not yet an option.

 

[duhastmish]

It's not an economically viable option.

You need billions of dollars to make these. While HAL is a very old company. It has all the experience. Full privatization is not yet an option.

For a separate private organisation we don’t need to pay. We just need to allow them and let them compete.

Hal is worthless. We have to kick all Buddhe out and make it result oriented.

 

[Chhatrapati]

For a separate private organisation we don’t need to pay. We just need to allow them and let them compete.

Hal is worthless. We have to kick all Buddhe out and make it result oriented.

That's the case with most government run organization. When you have secured job, you become lazy. If you don't have that sense of security then you will work hard.

Such a complete dismantling of HAL will make it redundant and cost us the ongoing projects.

 

[Papa Dragon]

Keep em. You can’t ruin it.

We can have two agency running separately. Once we realise worth or worthlessness of other. Kick them and sell it or don’t buy from it.

10% is nothing it’s not to do with employers but the employees.

Since quite a few years, the UPA and NDA govt have been trying to privatize Vizag Steel Plant. They've been trying to sell the controlling stake to private players like Tata or Jindal Steel as this organization has been in losses since since the past 2 decades. Even though it employs a large workforce of over 60k employees, it has been making losses in 100s of crores per day mainly due to the incentives and subsidies given to the workforce and you can't make the slightest move without the approval of labor unions. The labor leaders demand huge kickbacks and commissions for any decision that needs to be implemented.

I've interned at both Vizag steel plant and HAL back in my college days and unfortunately the situation is similar when it comes to the organizational management, labor unions or the work culture. Moreover, govts over the past couple of decades have invested billions in HAL and leaving it aside in favor of private firms is literally pouring all those billions down the drain and there would be a huge backlash from the work unions of HAL

The best option would be to start hiring workforce irrespective of reservations and gradually sell the controlling stake to some private Indian defense firm making sure the management is effective and international standards are maintained when it comes to quality.

 

[duhastmish]

That's the case with most government run organization. When you have secured job, you become lazy. If you don't have that sense of security then you will work hard.

Such a complete dismantling of HAL will make it redundant and cost us the ongoing projects.

No let’s evaluate them.
By virtue of fair valuations of investment and outcome. If we are making something good we must keep Hal.

Because it might end up being one of those ghar ki murti type as well for all we know.

Till now the assumption we have HAL is a sarkari body just like mcd or police chow ki.