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Modi government exceeds disinvestment target for the second time in a row, completes first-ever sale of ‘enemy shares’

'Enemy property' refers to the assets left behind by people who migrated to Pakistan or China and are no longer citizens of India.

The sale of ‘enemy shares’ and the buybacks of Central Public Sector Enterprises (CPSEs) have together generated a sum of Rs 11,300 crore for the government, thus helping the exchequer mop up Rs 85,000 crore from disinvestment in the current financial year. This is being considered the second highest receipt ever.

After the Cabinet’s go-ahead to the Department of Investment and Public Asset Management (DIPAM) to sell such shares held in companies, in November 2018, the government has, through the first-ever sale of ‘enemy shares’, collected an amount of Rs 700 crore. Besides, over Rs 10,600 crore has come in the form of buyback of government shares by Central Public Sector Enterprises (CPSEs).

‘Enemy property’ refers to the assets left behind by people who migrated to Pakistan or China and are no longer citizens of India.

In the fiscal year 2018-19, the government for the second time in a row exceeded the disinvestment target by collecting Rs 85,000 crore as against the budget estimate of Rs 80,000 crore. Similarly, in 2017-18, the government had mopped up a record over Rs 1 lakh crore, against the target of Rs 72,500 crore.

During the current financial year, the share sale through the Exchange Traded Funds (ETFs) has garnered the highest amount of Rs 45,729 crore, followed by Rs 14,500 crore acquired through government’s 52.63 per cent stake in REC (Rural Electrification Corporation) by the state-owned Power Finance Corporation (PFC).

Additionally, the government has also received Rs 1,929 crore through an initial public offering (IPO) of five companies, namely, MSTC, RITES, Ircon, Garden Reach Shipbuilders and Midhani.

Furthermore, the central government has collected Rs 5,218 crore from the offer for sale (OFS) of Coal India, and another Rs 5,379 crore from sale of SUUTI stake in Axis Bank.

Moreover, the companies which helped the government gather over Rs 10,600 crore through buybacks include, ONGC, IOC, Coal India, Oil India and NLC.

Viewing the accomplishments the government has set a disinvestment target of Rs 90,000 crore for the next fiscal.

 

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OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

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