Rs 21,400 cr raised via stake sale, 60% of fiscal target

During 2015-16, govt could manage to meet less than half budget estimates of divestment

The government has garnered over Rs 21,432 crore ($3 billion) through selling its stake in central public sector entreprises (CPSEs) during the first eight months of the current fiscal, representing nearly 60 per cent of the union budget's target, an official statement said on Tuesday.

"The total realization of Rs 21,432.38 crore, by end-November 2016 through CPSEs' disinvestment receipts, constitutes around 59.53 per cent of the budgeted target of Rs 36,000 crore (CPSEs' disinvestment)," a Finance Ministry release here said.

"During the current financial year 2016-17, the Government has so far realized Rs 23,528.73 crore, which includes Rs 21,432.38 crore through minority stake sale in 14 CPSEs and Rs 2096.35 crore through strategic disinvestment," which involves reducing government shareholding in the company to below 50 per cent, transferring, thereby, management control, the statement said.

"The disinvestment target for the current financial year has been estimated at Rs 56,500 crore, comprising Rs 36,000 crore from disinvestment of CPSEs and Rs 20,500 crore from strategic disinvestment," it added.

In October last year, the union cabinet gave in-principle approval to a proposal mooted by the NITI Aayog for strategic sale in public sector undertakings, including those that are making profits.

During 2015-16, the government could manage to meet less than half the budget estimates of divestment at Rs 25,312 crore, as against the target of Rs 69,500 crore.

The major divestments during the ongoing fiscal include the 15 per cent stake in National Buildings Construction Corp, which realised over Rs 2201 crore, the NHPC offer of sale (OFS) that yielded more than Rs.2,717 crore, NMDC buyback realising over Rs 7,519 crore and the buyback of shares by Coal India that earned the government Rs 2638.24 crore.