New Delhi: The Disinvestment Commission has recommended privatisation of four public sector units (PSUs) including National Buildings Construction Corporation (NBCC) and Cotton Corporation.

In a report submitted to government recently, the Commission suggested sale of 74 per cent stake of its 100 per cent shareholding in NBCC to strategic partner while retaining 26 per cent for three years.

The Commission has also recommended disinvestment in Indian Medicines Pharmaceuticals Corporation (IMPCL) and Jute Corporation of India (JCL).

It has also said an appropriate financial and organisational restructuring package should be formulated for the company after consultation with bidders.

The Commission noted there was no rationale for the government to continue in the company, as there were no social benefits accruing from future association due to existence of employment opportunities.

It further said there were no strategic reasons for continuation, nor was the government presence necessitated owing to monopoly considerations on account of presence of adequate number of players in the market.

NBCC has an equity base of Rs 120 crore and employs around 3,150 employees.

In the case of Cotton Corporation (CCI) where government holds 100 per cent stake, it said disinvestment would be conditioned by whether government decides to retain minimum support price (MSP) for cotton.

It said in case government chose to retain MSP, then strategic sale of 51 per cent stake would be appropriate while holding on to the remaining 49 per cent for a period of three years.

PTI