The realisation is, however, lower than the record Rs 2.10 lakh crore originally budgeted
The government has mopped up Rs 32,835 crore from CPSE share sale and buybacks, thus exceeding the disinvestment target set in the revised estimates (RE) for current fiscal.
The realisation is, however, lower than the record Rs 2.10 lakh crore originally budgeted. In the RE, the target was scaled down to Rs 32,000 crore as COVID-19 pandemic delayed planned big ticket disinvestments.
In the current financial year, the government has sold its stake via seven offer for sale (OFS) transactions and also tendered shares in buyback offerings by a similar number of CPSEs.
The seven OFS transactions, which include selling its stake in Tata Communications Ltd (erstwhile VSNL), has cumulatively netted Rs 22,973 crore to the exchequer in the current fiscal.
By way of tendering its shares in share buybacks by seven CPSEs, the government has garnered Rs 3,936 crore this fiscal which ends on March 31.
Also, three CPSEs RailTel, IRFC and Mazagon Dock Shipbuilders were listed on the bourses and their initial public offerings (IPO) fetched Rs 2,802 crore.
Besides, Rs 3,125 crore has accrued by selling stakes in companies held via SUUTI.
For 2021-22 fiscal beginning April 1, the government has set a disinvestment target of Rs 1.75 lakh crore, over five times what it raised in the current financial year.
While the country’s largest insurer LIC’s IPO is in the pipeline for next fiscal, privatisation of IDBI Bank too is likely next fiscal.
The process of privatisation of Air India, BPCL, Pawan Hans, BEML, NINL and Shipping Corp has also moved to the second stage after the government received multiple expressions of interest for these CPSEs.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.