BPCL, Concor Privatisations Can Lead To Much Bigger PSU Stake Sales: Subhash Chandra Garg
Successful privatisation of Bharat Petroleum Corporation Ltd., Container Corporation of India and Shipping Corporation of India will lay the foundation of much bigger PSU stake sales, according to former Finance Secretary Subhash Chandra Garg.
From the perspective of non-tax income and receipts, 2019-20 will be an eventful year witnessing some extraordinarily positive events and a few misses, Garg said in a blog.
"Initiation of strategic stake sale in BPCL, Concor and SCI was a path-breaking measure and if carried to its logical end, the privatisation agenda, stalled for last more than 15 years, would come back on track.
"These three transactions would lay foundation for a much more ambitious programme of disinvestment of central public sector undertakings," he said.
The former finance secretary also noted that if this larger, more ambitious programme of strategic disinvestment can be announced, company by company, in Union Budget 2020-21, it would send a very clear and positive message.
He pointed out that another extremely positive outcome for the government was the receipt of extraordinarily large surplus transfer from the Reserve Bank of India.
The government received about Rs 1.5 lakh crore, which was higher than the transfer received in the last three years together."It is unlikely to continue in 2020-21, but if RBI does not end up retaining any part of surplus in 2020-21 distribution, the government can expect to get about Rs 90,000 crore.
"If RBI retains, it might be about Rs 10,000 crore less," he said.