Govt rakes in Rs 4.37 lakh cr via disinvestment since FY15: MoS for finance Pankaj Chaudhary

Of this, Rs 3,30,049 crore has been realised through minority stake sales in state-run firms and Rs 69,412 crore from strategic sales of 11 central public sector enterprises (CPSEs), Chaudhary said in a written reply.

The strategic sales proceeds don’t include Rs 12,100 crore and Rs 320 crore received for NINL and FSNL (Subsidiary), as the government didn’t have any direct equity in these companies. Other transactions yielded Rs. 37,981 crore.

He said since FY15, 18 CPSEs, including Life Insurance Corporation of India, have been listed, which yielded Rs 51,225 crore. An additional market capitalization of Rs 7.31 lakh crore was achieved through the new listings, the minister added.

After the listing, further disinvestment in various CPSEs through offers for sale yielded Rs 1,34,771 crore, and Rs 45,104 crore was realized from the buyback of shares by 45 CPSEs.

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“Currently, as a part of holistic public asset management strategy, the government has focussed on a calibrated disinvestment approach through listing/IPO of companies and gradual dilution of minority stake through stock market, consistent with interest of minority shareholders,” the minister said.

This “calibrated approach” has enabled CPSEs to improve their efficiency and growth and become important players in the capital market, he added.

“The calibrated disinvestment approach also ensures that transactions whenever carried out remain aligned to overall market direction,” he said. This has enhanced the value of CPSEs, increasing returns to shareholders, he stressed.

Disinvestment outlook

Chaudhary said it is “difficult to anticipate the quantum of actual proceeds from disinvestment for a particular period”. Disinvestment, he said, is an