Alternative disinvestment plan soon: FM

Government will come out with an alternative strategy in two to four weeks, to push public sector undertaking (PSU) disinvestment in volatile markets, Finance Minister Arun Jaitley said on Friday..

"We have to find out an alternative method for this (disinvestment). Wait for 2-4 weeks, the government will come out with an alternative strategy as to what to do in such volatile markets," he said.

As against the target of Rs 69,500 crore, the government has, in the current financial year, garnered Rs 12,700 crore. It has been able to sell stake in four PSUs — IOC, PFC, REC and Dredging Corp.

“For the past few months, we have slowed the pace because it does not make sense to sell PSU shares at low prices when markets are volatile. We’ll disinvest when we get the right price,” Jaitley told CNBC Awaaz.

On whether divesting PSU stake amounts to selling family silver, Jaitley said it is an “old socialist thinking”. "It is re-adjustment of government money, whether you want government money only in the shares of the company, or you actually want to create a highway, port, airport -- the larger public interest. We are reallocating government expenditure."

He said PSU disinvestment happened aggressively at the time of Atal Bihari Vajpayee government though it led to certain controversies.

"Disinvestment happened aggressively at the time of the Vajpayee government. In Atal government, controversies happened and our vote bank also came down. In 5 years, we garnered Rs 28,000 crore through disinvestment. In last one-and-a-half years, without any controversy, I have garnered Rs 36,000 crore," Jaitley said.