Finance Minister Nirmala Sitharaman reiterated the Centre’s commitment to privatise most government-owned firms barring a few in four strategic sectors, in her Budget speech.
She also announced a comprehensive asset monetisation plan by creating a National Monetisation Pipeline, under which assets such as road projects, railway freight corridors, gas and oil pilpelines etc would be put up for sale or leased to private players. The finance minister also announced plans to privatise two public sector banks and one general insurance company in 2021/22. PSUs, including Air India, BPCL, CONCOR and Shipping Corporation of India, are already up for privatisation.
Also, despite falling short of the disinvestment target of ₹2.1 lakh crore for 2020/21 (it is likely to be ₹32,000 crore for the current fiscal) partly due to the Covid-19 and the subsequent lockdown, the government has once again set an ambitious target of ₹1.75 lakh crore for 2021/22. It hopes to realise ₹75,000 crore from the sale of CPSEs and ₹1 lakh crore from the sale and disinvestment of public sector banks and financial institutions.
But, how realistic are these targets? While it is easier to sell one PSU to another, privatisation involves special efforts in convincing employees’ unions, getting the right price, etc. Any private company looking to buy these companies would look for a hard bargain.
Lofty Target?
Ever since it clocked a record ₹1 lakh crore in disinvestment proceeds in 2017/18, the government has been off target.
Denne historien er fra February 21, 2021-utgaven av Business Today.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra February 21, 2021-utgaven av Business Today.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Pension Scheme - Safety Net
The move to introduce the UPS has evoked mixed reactions. Analysts believe its funding will have limited impact on the fiscal math
The Reit Choice?
Real Estate Investment Trusts (Reits) Are Gaining Traction As Interest Rates Stabilise. But Returns Could Be Affected By Adverse Economic Conditions And Market Volatility
CORPORATE - Calling to Account
The sudden exit of Byju's auditor BDO marks the latest in a long series of setbacks for the edtech firm
EMPLOYMENT: Skills Push
The skill development ministry plans to partner with the UGC to improve the employability of undergraduates
Building on a Vision
L&T'S CHAIRMAN EMERITUS A. M. NAIK HAS BUILT A MAMMOTH ENTERPRISE THAT IS BUILDING A NEW INDIA, FROM ITS METRO RAIL SYSTEMS TO THE RAM TEMPLE
"KYS more important than KYC"
Vijay Kedia is a renowned equity investor; the value of his listed portfolio stands at around ₹1,750 crore
ROXX STAR
THE THAR ROXX COMBINES LUXURY WITH PERFORMANCE TO MAKE A STRONG STATEMENT IN THE MID-SIZE SUV SEGMENT
HIT THE GROUND RUNNING
Smartwatches have become indispensable tools for runners, offering real-time insights into pace, distance, heart rate, and more. Here are a few you can consider
TURNING THE TABLES
INDIA'S FURNITURE MARKET IS POISED FOR A GLOBAL TAKE-OFF. ALREADY, A HOST OF GLOBAL BRANDS HAVE MADE THE COUNTRY THEIR HOME, BUT INDIAN COMPANIES ARE NOT TOO FAR BEHIND
THE EVOLUTION OF ATHERA
IDENTIFYING OPPORTUNITIES IN ADVANCE HAS STOOD THIS BENGALURU-BASED VC FUND IN GOOD STEAD. NOW, WITH A HEIGHTENED FOCUS ON TECHNOLOGY, IT WANTS TO SUSTAIN THE SUCCESS