Public Sector Disinvestments target receipts records Rs 8,625 crore in FY 2024-25: Govt
The government has received Rs 8,625 crore through different minority stake sale disinvestment transactions during the current financial year.
Public Sector Disinvestments target receipts records Rs 8,625 crore in FY 2024-25: Govt
The government has collected Rs 8,625 crore from disinvestment receipts during the financial year 2024-25. These funds were raised through various transactions involving the sale of minority stakes, as stated by the Minister of State for Finance, Pankaj Chaudhary, in a written response to the Lok Sabha.
He mentioned, “So far, the government has received Rs 8,625 crore through different minority stake sale disinvestment transactions during the current financial year.”
It's important to note that profitability or loss is not a relevant criterion for privatization or strategic disinvestment. Disinvestment is an ongoing process, and the execution or completion of specific transactions depends on market conditions, the domestic and global economic outlook, geopolitical factors, investor interest, and administrative feasibility.
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The government typically conducts disinvestment through minority stake sales and strategic disinvestments of Central Public Sector Enterprises (CPSEs). Strategic disinvestment involves the full or substantial sale of government shareholding in a CPSE along with the transfer of management control.
In the case of privatization, the government’s equity and management control in a CPSE is transferred to a private buyer, while in other instances, equity is transferred to another CPSE along with control.
“The policy on strategic disinvestment/privatization is based on the economic principle that Government should discontinue in sectors, where competitive markets have come of age and economic potential of such entities may be better discovered in the hands of strategic investor due to various factors such as infusion of capital, technological upgradation and efficient management practices,” the minister added.
The government, since 2016, has given ‘in-principle’ approval for strategic disinvestment of 36 cases of PSEs and/or Subsidiaries/Units/Joint Ventures of PSEs/Bank.
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