The Modi government hopes to receive Rs 1.05 lakh crore by selling stake in CPSEs duing the financial year 2019-20. In its first Budget, the Modi government 2.0 promised to not only reinitiate strategic disinvestment of Air India, but also offer more CPSEs for "strategic participation by the private sector".
"Strategic disinvestment of select CPSEs would continue to remain a priority of this Government. In view of current macro-economic parameters, Government would not only reinitiate the process of strategic disinvestment of Air India, but would offer more CPSEs for strategic participation by the private sector," Finance Nirmala Sitharaman said during her first Budget speech.
Presenting the Union Budget 2019, FM Sitharaman stated that the government will undertake strategic sale of PSUs and also continue to do consolidation of PSUs in the non-financial space as well.
"Government intends to further encourage retail participation in CPSEs which, of late has shown very encouraging upward trend. In order to provide additional investment space, the government would realign its holding in CPSEs, including banks, to permit greater availability of its shares and to improve depth of its market," the Finance Minister said.
Meanwhile, experts showed faith in the latest disinvestment target laid down by the government.
FULL COVERAGE: Union Budget 2019
"The disinvestment target of 1.05 lakh crores is achievable and has to be strongly pursued. The proposal to raise public stake in listed companies is desirable but will face practical constraints in implementation in the case of some large-cap companies," said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
(Edited by Vivek Punj)