Disinvestment in simple words refers to sale of Government’s stake in public sector undertakings to arrange money for budgetary requirements. Government of India has set a target of Rs 41000 crores through disinvestment during financial year 2015-16. The first such disinvestment was announced in Rural Electrification Corporation (REC) on 7th April 2015 when sale of 5% stake was done through which Government fetching an estimated amount of Rs 1550 crores. This issue was oversubscribed 5 times.
In January 2015, Government sold 10% shares in Coal India Limited and fetched a record amount of Rs 22600 crores which was biggest amount through disinvestment in the year 2014-15. Now again Government is planning to sell 5% stake in 2015-16 which is expected to Generate around Rs 12000 to 13000 crores. By April end 2015, Government is planning to sale 5% stake in Power Finance Corporation. For the year 2015-16, Government has prepared a list of companies where disinvestment has been planned. Such companies are:
|Stake expected to be sold|
|1 Rural Electrification Corporation (REC)||5%|
|2 Power Finance Corporation (PFC)||5%|
|3 Oil & Natural Gas Commission (ONGC)||5%|
|4 Coal India Limited (CIL)||5%|
|5 Natural Mineral Dev. Corporation (NMDC)||10%|
|7 Dredging Corporation||5%|
|9 Indian Oil||10%|
|10 Hindustan Copper||15%|
|11 MMTC Ltd||15%|
|12 Rastriya Chemicals & fertilizers||5%|
|13 National Fertilizers||15%|
|14 State Trading Corporation||15%|
|15 Indian Tourism Dev. Corporation||15%|
|16 Engineers India||10%|
If Govt. successfully complete its plan of disinvestment, targets set for 2015-16 would be easily achieved and amount so arranged would edge budgetary constent for planned development actitvity for the year 2015-16.
Source: Above list of institutions has been taken from daily news paper Business Standard Dt. 21.04.2015.
B K Jain Dean, MBA