Helped by the sale of its holding in Tata Communications and a 15% stake sale in Rail Vikas Nigam Ltd this month, the government has scraped through the revised disinvestment target.
The government got Rs 32,835 crore in FY21 through offers for sale, buybacks and initial public offerings of RailTel Corp. of India Ltd, Indian Railway Finance Corp and Mazagon Dock Shipbuilders. It had scaled down the original target of Rs 2.1 lakh crore, set during February 2021 to Rs 32,000 crore after the pandemic stalled divestment activity till August.
The government raised 543 crore from a 15% stake sale in Rail Vikas Nigam Ltd via an offer for sale. its largest disinvestment of stake in Tata Communications (erstwhile VSNL) fetched Rs 8,847 crore. The government has exited the company by selling its 26% stake.
As on March 9, 2021, Centre has received Rs 21,303 crore from disinvestment, which amounts to 67 per cent of the revised estimate for FY21.
Earlier missed targets
The government has exceeded the disinvestment target thrice since 2014-15. While the milestone was missed in two fiscals during this period.
Disinvestment receipts exceeded the target during 2016-17, 2017-18 and 2018-19, while falling short in 2014-15 and 2019-20.
Government earned Rs 24,349 crore from disinvestment in 2014-15, against revised estimate (RE) of Rs 26,353 crore, but missed the target in 2015-16 at Rs 23,997 crore against RE of Rs 25,314 crore. In 2016-17, 2017-18 and 2018-19, Centre earned Rs 46,247 crore against RE of Rs 45,500 crore, Rs 1,00,057 crore against RE of Rs 1,00,000 crore, and Rs 84,972 crore against RE of Rs 80,000 crore, respectively..
It once again missed the disinvestment target in 2019-20, raking in Rs 50,299 crore against the revised estimate of Rs 65,000 crore.
The government on Monday budgeted Rs 1.75 lakh crore from stake sale in public sector companies and financial institutions, including 2 PSU banks and one insurance company, in fiscal 2022.
Unveiling the PSE policy in Budget 2021-22, Finance Minister Nirmala Sitharaman had said barring four strategic areas, public sector companies in other sectors will be divested. The policy would give a clear roadmap for disinvestment in strategic and non-strategic sectors.
Sitharaman said a revised mechanism for fast-tracking closure of loss-making PSUs would be worked out and an incentive package would be developed to incentivise states to sell stake in state PSUs.
To monetise lands owned by CPSEs, a special purpose vehicle (SPV) would be developed.