Strategic Sale To Be Primary Mode For Divestment State-Run Firms: Anurag Thakur
The scope for sale of minority stakes in public sector companies has reduced and strategic disinvestment would be the primary mode for disinvestment receipts going forward, Minister of State for Finance Anurag Singh Thakur said on Tuesday.
In a written reply to Rajya Sabha, Thakur said the government has realised Rs 20,627 crore as disinvestment receipts till March 3, which is around 64% of Revised Estimate in 2020-21.
Disinvestment of the government's equity in central public sector enterprises depends largely on market sentiment, investor interest, and market valuation of those stocks.
"Over a period of time, the scope of minority stake sale has declined and strategic disinvestment and privatisation would be the primary mode for disinvestment receipts," Thakur said.
The disinvestment receipts in the revised for current fiscal ending March has been significantly scaled down from the Budget estimates of Rs 2.10 lakh crore.
Thakur said adverse market conditions arising due to Covid-19 adversely impacted the government's disinvestment plans.
"The Covid-19 pandemic and contraction in manufacturing and services post lockdown coupled with uncertainty in financial markets, posed significant challenges before the disinvestment efforts of the government, and delayed transactions both for minority stake sale and strategic disinvestment during large part of FY 2020-21," Thakur added.
He also said that with the recovery of the stock market subsequently, the disinvestment transactions are coming back on track.
The government has decided on strategic disinvestment of Rastriya Ispat Nigam Ltd., Neelachal Ispat Nigam Ltd., NMDC's Nagarnar unit, Ferro Scrap Nigam Ltd., and units of SAIL -- Alloy Steel Plant, Durgapur; Visvesvaraya Iron and Steel Plant and Salem Steel Plant.