Union Budget 2019: Divestment target hiked to Rs 105,000 crore for FY20https://indianexpress.com/article/business/budget/union-budget-2019-divestment-target-hiked-to-rs-105000-crore-for-fy20-5817830/

Union Budget 2019: Divestment target hiked to Rs 105,000 crore for FY20

“Government is setting an enhanced target of Rs 1,05,000 crore of disinvestment receipts for the financial year 2019-20. The Government will undertake strategic sale of PSUs. The Government will also continue to do consolidation of PSUs in the non-financial space as well,” said Finance Minister Nirmala Sitharaman.

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Finance Minister Nirmala Sitharaman

Betting on strategic sale of public sector undertakings including that of Air India, the government has set a record target of Rs 105,000 crore from disinvestments for 2019-20. The target has been raised from Rs 90,000 crore that was set in the interim budget presented on February 1, 2019.

“Government is setting an enhanced target of Rs 1,05,000 crore of disinvestment receipts for the financial year 2019-20. The Government will undertake strategic sale of PSUs. The Government will also continue to do consolidation of PSUs in the non-financial space as well,” said Finance Minister Nirmala Sitharaman. Adding that strategic disinvestment of select CPSEs would continue to remain a priority for the Government the minister said, “In view of current macro-economic parameters, government would not only reinitiate the process of strategic disinvestment of Air India, but would offer more CPSEs for strategic participation by the private sector.” If the government manages to meet its target of Rs 105,000 crore it will add additional receipt of over Rs 20,000 crore, purely on account of higher disinvestment receipts.

The government had raised Rs 84,970 crore against a target of Rs 80,000 crore in the financial year 2018-19 and had raised a record of Rs 100,045 crore in 2017-18 against the target of Rs 75,000 crore. Even in the year 2016-17, the government raised Rs 10,778 crore through strategic sale out of the total disinvestment receipt of Rs 46,245 crore.