new Delhi: Since the Narendra Modi government came to power in 2014, the government has raised over Rs 4.04 lakh crore through disinvestment and strategic sale of public sector enterprises (CPSEs). The Finance Ministry gave this information on Tuesday (December 20).
Out of this, the maximum amount of Rs 1.07 lakh crore has been raised through offer for sale (OFS) in 59 cases. After this, a total of Rs 98,949 crore has been raised through stake sale in 10 installments through Exchange Traded Fund (ETF).
In the last eight years, the exchequer got Rs 69,412 crore from the strategic sale of 10 companies, including Air India. Whereas in 45 cases Rs 45,104 crore was received from share buyback.
17 PSUs have been listed for strategic sale since 2014-15, fetching Rs 50,386 crore.
Of this, the government got Rs 20,516 crore from the initial public offering (IPO) of insurance company LIC alone.
According to news agency PTI, the ministry said that an additional market capitalization of Rs 7.31 lakh crore was achieved through the new listing.
Besides this, the government has sold its remaining stake in Paradip Phosphates Limited, IPCL and Tata Communications for Rs 472 crore, Rs 219 crore and Rs 8,847 crore, respectively.
In the data presented in the Lok Sabha, the government said, in the year 2017-18, a target of Rs 1,00,000 crore was set for disinvestment, in that year the disinvestment receipts were Rs 1,00,057 crore.
Similarly, in the year 2018-19 disinvestment target Rs 80,000 crore and disinvestment receipts Rs 84,972 crore, in 2019-20 disinvestment target Rs 65,000 crore and disinvestment receipts Rs 50,299 crore, in 2020-21 disinvestment target Rs 32,000 crore and disinvestment receipts Rs 32,845 crore And in 2021-22, the disinvestment target was Rs 78,000 crore and disinvestment receipts were Rs 13,531 crore.
On behalf of the government, it was said that due to the COVID epidemic, there were serious uncertainties in the economic and market environment during the last few years. Global economic turmoil and geo-political tensions have adversely affected the disinvestment process, closing of ongoing deals and initiation of new deals.
In response to a question related to the privatization of banks, the government said, ‘Any bank is classified by the Reserve Bank of India (RBI) as a public sector bank (PSB) or a private sector bank (PVB). Is. RBI vide notification dated 14/3/2019 classified IDBI Bank as a private sector bank with effect from 21/1/2019 following acquisition of 51 per cent controlling stake by Life Insurance Corporation of India.’
It is known that Finance Minister Nirmala Sitharaman had said in her budget speech for 2021-22 that Bharat Petroleum Corporation Limited (BPCL), Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML Limited, Pawan Hans, Neelachal Many disinvestment programs including Ispat Nigam Limited will be completed in 2021-22.
The government had set a target of raising Rs 1.75 lakh crore in the financial year 2021-22 from stake sale (disinvestment or privatization) in public sector undertakings and financial institutions. At that time, the government had also expressed its intention to sell its stake in two public sector banks and an insurance company in the next financial year.
Presenting the Public Sector Enterprise (PSE) policy in the Budget 2021-22, Finance Minister Nirmala Sitharaman had said that except for four strategic sectors, government companies in other sectors would be disinvested. This policy will present a clear outline for disinvestment in strategic and non-strategic sectors.
He had said that IDBI Bank, BPCL, Shipping Corporation, Neelachal Ispat Nigam Limited and other companies would be disinvested in the next financial year. Apart from this, legislative amendments for IPO of LIC will also be brought in 2021-22. LIC’s IPO has been brought in the beginning of this May.
(With inputs from news agency Bhasha)
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