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Saturday, February 27, 2021

CPSE disinvestment, share buyback: Govt collects Rs 19,499 crore

With the pandemic impacting big ticket strategic sales and the listing of insurance giant Life Insurance Corporation, the Centre is likely to miss the budgeted disinvestment target by a wide margin in this fiscal.

By: ENS Economic Bureau | New Delhi |
February 1, 2021 12:53:31 am
CPSE disinvestment, share buyback, union budget, Nirmala Sitharaman, Indian eonomy, economy news, Indian express newsIn her Budget 2020-21 presentation, Finance Minister Nirmala Sitharaman had set a target of raising Rs 2.1 lakh crore by means of privatisation, sale of minority stakes in state-owned companies and share buyback by central public sector enterprises (CPSEs).

Against the budgeted target of Rs 2.10 lakh crore for the ongoing fiscal, the government has so far garnered Rs 19,499 crore through CPSE disinvestment and share buyback.

With the pandemic impacting big ticket strategic sales and the listing of insurance giant Life Insurance Corporation, the Centre is likely to miss the budgeted disinvestment target by a wide margin in this fiscal.

In her Budget 2020-21 presentation, Finance Minister Nirmala Sitharaman had set a target of raising Rs 2.1 lakh crore by means of privatisation, sale of minority stakes in state-owned companies and share buyback by central public sector enterprises (CPSEs).

While Rs 1.20 lakh crore was to come from stake sale in CPSEs, Rs 90,000 crore was to be collected from share sale in financial institutions.

As many as four public sector units — Hindustan Aeronautics Ltd (HAL), Bharat Dynamics, IRCTC and SAIL — have come out with offer-for-sale (OFS) this financial year. This fetched Rs 12,907 crore to the exchequer.

Besides, the initial public offering (IPO) by IRFC and Mazagon Dock Shipbuilders together fetched Rs 1,984 crore.

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