Economic Survey sets Rs 25,000 cr/yr target from PSU disinvestment

The government should sell a minimum 10 per cent stake in all unlisted public sector enterprises and "auction" those that can't be revived, the Economic Survey said, while recommending a disinvestment target of Rs 25,000 crore annually.     

"Revitalise the disinvestment programme and plan to generate at least Rs 25,000 crore per year," said the Survey tabled in Parliament today.     

The prescription coincides with government declaring disinvestment as one of its top most priorities for mobilisation of resources, particularly, as it is free from the pressures of the Left parties that had obstructed the process in the last five years.     

Asking the government to sell a minimum of 10 per cent equity in all profit-making unlisted PSUs, it added: "Complete the process of selling 5-10 per cent equity in previously identified profit making non-Navratnas."     

As regards the loss-making PSUs, the Survey said the government needs to "auction all loss making PSUs that cannot be revived. For those in which net worth is zero, allow negative bidding in the form of debt-write off."     

Finance Minister Pranab Mukherjee is likely to unveil the road map for disinvestment in the Budget, to be presented in the Lok Sabha on July 6.