In order to meet disinvestment target at Rs 40,000 crore for current financial year, the government has planned to sell stakes in Public Sector Undertakings (PSUs) such as Indian Oil Corporation and Engineers India in January. The government also proposes to offload equity in BHEL in February and Hindustan Aeronautics (HAL) in March.
The government has so far only managed to raise Rs 3,000 crore from disinvestment in seven PSUs, including Power Grid Corporation of India, Hindustan Copper, National Fertilisers and MMTC. On the other hand, country’s fiscal deficit touched around 94 percent of the budgeted target in the first eight months of the current fiscal. The government has set fiscal deficit target at 4.8% of GDP for current fiscal.
The government has decided to offload 10 percent stake sale in IOC and EIL and are expected to yield Rs 5,000 crore and Rs 500 crore, respectively. It also proposes to garner Rs 3,000 crore from a 10 percent stake sale in HAL and Rs 2,000 crore from 5 percent stake sale in BHEL. The government will also float some PSU shares through the Central Public Sector Enterprises ETF, which is estimated to have a corpus of Rs 3,000 crore. The ETF would serve as an additional mechanism for the government to monetise its shareholdings in companies. The exchange-traded fund (ETF) is set up to reduce volatility in shares of state-owned companies and comprises 2-3 percent of the shares of PSUs.
The government has so far only managed to raise Rs 3,000 crore from disinvestment in seven PSUs, including Power Grid Corporation of India, Hindustan Copper, National Fertilisers and MMTC. On the other hand, country’s fiscal deficit touched around 94 percent of the budgeted target in the first eight months of the current fiscal. The government has set fiscal deficit target at 4.8% of GDP for current fiscal.
The government has decided to offload 10 percent stake sale in IOC and EIL and are expected to yield Rs 5,000 crore and Rs 500 crore, respectively. It also proposes to garner Rs 3,000 crore from a 10 percent stake sale in HAL and Rs 2,000 crore from 5 percent stake sale in BHEL. The government will also float some PSU shares through the Central Public Sector Enterprises ETF, which is estimated to have a corpus of Rs 3,000 crore. The ETF would serve as an additional mechanism for the government to monetise its shareholdings in companies. The exchange-traded fund (ETF) is set up to reduce volatility in shares of state-owned companies and comprises 2-3 percent of the shares of PSUs.
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