Divestment Target to be Scaled Down
NEW DELHI: With the government unlikely to achieve its ambitious dis-investment target this year as well, sources have indicated that government is going to scale down its disinvestment target to Rs 30,000 crore during the upcoming Budget 2016-17.
Finance Minister Arun Jaitley had set up an ambitious target to raise Rs 69,500 while presenting the Union Budget 2015-16. The government has however, admitted that such ambitious targets are not achievable given the volatile market conditions. The disinvestment ministry officials told the Finance Ministry that keeping a Rs 30,000 crore target for this fiscal will be more ‘realistic’.
The government has so far been able to collect only Rs 12,600 crore from stake sale of four PSUs - Power Finance Corporation, IOC, Dredging Corporation and Rural Electrification Corporation. This will be the fourth consecutive financial years where the government will be missing its disinvestment target.
In 2013-14, the government has raised Rs 15,819 crore against the target of Rs 40,000 crore. In 2014-15, it raised Rs 24,277 crore against the target of Rs 36,925 crore.
Even though if the government manages to raise Rs 30,000 crore, it would still be the highest-ever disinvestment kitty in a year for the government. On the backdrop of slowdown in Chinese economy and volatile stock markets, the official said that the ministry is taking a cautious approach in going ahead with any disinvestment plans.
The official further added, that if market conditions remain favourable next year, the disinvestment of Coal India alone would help the government to achieve the ‘realistic’ target.