Unions protest as sale of stake in CSL revives ‘privatisation’ fears.

Members of the Cochin Shipyard Employees Union affiliated to both the CPI(M) and the Congress staged a protest against the Centre’s move to sell stakes in PSUs. | Photo credit: Special arrangement

The latest decision by the central government to dilute its stake in Cochin Shipyard Ltd. (CSL) through an offer for sale (OFS) has revived concerns among labor unions over what they fear is a gradual privatization of the profitable public sector enterprise.

Unions affiliated to the CPI(M) and the Congress staged a protest outside the south gate of the shipyard on Wednesday, demanding that the Center withdraw the proposed share sale and keep the company in full public ownership. Cochin Dockyard Employees Federation (CITU), Cochin Dockyard Employees Organization (INTUC), Cochin Dockyard Employees Union and Cochin Dockyard Workers Union (CITU) participated in the protest meeting.

The unions argued that subsequent rounds of dilution would ultimately weaken the government’s control of the strategic shipbuilding and repair company.

Union leaders said in a statement that around 32.14% of the government’s stake has been gradually diluted since the Center began disinvestment in the company through an initial public offer (IPO) in August 2017.

While the government’s stake fell to 75% after the IPO, the government regularly reduced its stake to as low as 67.91% through the sale of smaller stakes than announced in the latest OFS.

The government announced the OFS with a base offer of 2.52 percent of its paid-up capital and an additional 2.52 percent as a green shoe option in case of oversubscription. The government’s share thus falls to approximately 62%.

“The majority stake still remains with the government because of the unions’ initial reactions to the disinvestment. There is no reason to privatize a company that has consistently posted a profit,” said Cochin Shipyards Employees’ Federation (CITU) president M Anilkumar. He claimed that the sales of the smaller stake were aimed at gauging the reaction of stakeholders to the Centre’s attempt to privatize the entity.

In the meantime, the management of ČSL declared that the concerns of the trade unions are unfounded. “The latest OFS will in no way affect the operational aspects of CSL. We will remain a government company with 62.86% shares. Based on the information I have, I don’t think there will be any further dilution in the near future,” said Jose VJ, Chairman and CEO of CSL.

Published – 8 Jul 2026 22:05 IST