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Government exceeds disinvestment target
Why is it in the news ?
- The government has exceeded its disinvestment target for the current fiscal by Rs 5,000 crore, taking the total proceeds to Rs 85,000 crore.
More in the news
- This is the second highest disinvestment proceeds in a financial year after the government last fiscal mopped up a little over Rs 1 lakh crore.
- The increase in last fiscal proceeds was helped by ONGC acquiring government’s entire 51.11 per cent stake in oil refiner HPCL for Rs 36,915 crore.
- In the current fiscal, the government is eyeing Rs 14,500 crore by way of sell of its 52.63 per cent stake in REC to state-owned Power Finance Corporation (PFC).
- The government has also earned large amounts from the sale of ETFs, with the latest edition, so far, having earned it ₹10,000 crore.
- However, the official database of the Department of Investment and Public Asset Management (DIPAM) does not reflect the updated figures or sales yet.
- Disinvestment:(1) In the case of PUSs, disinvestment means Government selling/ diluting its stake (share) in Public Sector Undertakings in which it has a majority holding.(2) Disinvestment is carried out as a budgetary exercise, under which the government announces yearly targets for disinvestment for selected PSUs.(3) Disinvestment is aimed at reducing the financial burden on the government due to inefficient PSUs and to improve public finances.(4) It introduces competition and market discipline and helps to depoliticise non-essential services.
Source
Indian Express.