Stiff targets for PSUs: How they are caught between govt and markets

State-owned companies have been set stiff targets to increase accountability as they get ready for disinvestment. Here's why meeting them will be challenging

In trying to meet its ambitious disinvestment target of Rs 2.1 trillion for the current financial year, the government plans to push ahead with stake sales of public sector units in the market. Raising income from disinvestment has become even more critical this year as the government seeks to finance infrastructure and other spending to revive the pandemic-hit economy.  But in doing so, it is facing a troubling issue.

Public sector enterprises have seen their market capitalisation drop 16.6 per cent since the beginning of calendar 2020, against an 18 per cent rise in m-cap of all listed companies during