Union Finance Minister Nirmala Sitharaman, in her Budget speech today, may raise the divestment target for the next financial year to Rs 1.5-lakh crore from Rs 1.05 lakh crore. The tarket is likely to be raised keeping in mind the upcoming sale of Air India and BPCL Bharat Petroleum Corp. Ltd.
The Centre plans to sell 100 per cent and 53.29 per cent ownership in state-owned airline Air India and BPCL, respectively. Apart from these two, the government has approved disinvestment in four other central public sector enterprises (CPSEs) -- 63.75 per cent in Shipping Corporation of India and 30.8 per cent (of 54.8 per cent) in Container Corporation of India to be sold to a strategic buyer, while 74.23 per cent in THDC and 100 per cent in North Eastern Electric Power Corporation Limited (NEEPCO) to NTPC.
FULL COVERAGE: Union Budget 2020
Prime Minister Narendra Modi-led government has managed to exceed its disinvestments targets (revised estimates) for the past three financial years. But, so far during FY20, just Rs 17, 364.3 crore has been obtained through disinvestment transactions.
Notably, as on March 31, 2019, disinvestment proceeds of Rs 84,972.2 crore were realised as against the budget estimate of Rs 80,000 crore during the financial year 2018-19. Total disinvestment proceeds during 2017-18 were a tad higher at Rs 1,00,056.9 crore compared to the revised target of Rs 1,00,000 crore.
As per experts, fetching the right price has been difficult for the Centre but the situation could improve next year.