The government had missed the disinvestment target by Rs 45,503 crore for the financial year 2015-16. The government received approximately Rs 23,997crore from the disinvestment of Central Public Sector Enterprises (CPSEs) last year as against the target of Rs 69,500 crore, said Arjun Ram Meghwal, Minister of State (MoS), Finance Ministry.

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The budget estimate for disinvestment during FY2015-16 was Rs 69,500 crore which comprised of Rs 41,000 crore from disinvestment of CPSEs and Rs 28,500 crore from strategic disinvestment.

In addition, an amount of Rs 1,023 crore(approximately) has been realised as buyback tax on account of buyback transaction, undertaken by unlisted CPSEs and Rs 8,152 crore on account of sale of bonus debentures of NTPC to EPFO.

For this financial year (FY2016-17) the budget estimate for disinvestment is Rs 56,500 crore, which comprises of Rs 36,000 crore as disinvestment receipts from CPSEs and Rs 20,500 crore from strategic disinvestment.

The government has put in place certain steps for achieving the disinvestment target this year. This includes realising an amount of Rs 3,183 crore from disinvestment of NHPC, and Employee OFS of IOCL and NTPC.

“Government has expressed intent to participate in buyback shares proposed by NALCO, MOIL NMDC and CIL. Some CPSEs have been identified for disinvestment in sector like mineral and metal, oil, energy, capital goods as well as some mid-sizes and small stocks,” said Meghwal.

In line with the announcement made in the Budget 2015-16, the Cabinet Committee of Economic Affairs (CCEA) in its meeting held on February 17, 2016 approved the structure for 'strategic disinvestment' of CPSEs, added Meghwal as a step towards increasing disinvestment.