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The government has realised Rs 8,625 crore through various minority stake sale disinvestments so far during the current financial year 2024-25, MoS Finance Pankaj Chaudhary informed Lok Sabha on Monday in a written reply.
The government was asked to spell out details of disinvestment targets set and achieved by the government during the last five financial years. The minister informed the lower house of the Parliament that the separate disinvestment target or estimate has been discontinued since the stage of 2023-24 (RE). During 2024-25, the government has specified no estimate or target for disinvestment receipts. "So far, the Government has realised Rs. 8,625 crore through various minority stake sale disinvestment transactions during the current financial year," the minister said in his written reply in Lok Sabha. The government typically carries out disinvestment through a minority stake sale and strategic disinvestment of CPSEs. Strategic Disinvestment implies the entire or substantial sale of government shareholding of a CPSE along with the transfer of management control. In the case of privatization, the government equity in CPSE and its management control is transferred to a private strategic buyer(s) and in other cases of strategic disinvestment, the government equity is transferred to another CPSE along with control. "The policy on strategic disinvestment/privatization is based on the economic principle that Government should discontinue in sectors, where competitive markets have come of age and economic potential of such entities may be better discovered in the hands of strategic investor due to various factors such as infusion of capital, technological upgradation and efficient management practices," the minister's reply read. Profitability or loss is, however, not among the relevant criteria for privatization or strategic disinvestment. Disinvestment is an ongoing process, and execution/completion of specific transactions hinges upon market conditions, domestic and global economic outlook, geopolitical factors, investor interest and administrative feasibility. The government, since 2016, has given 'in-principle' approval for strategic disinvestment of 36 cases of PSEs and/or Subsidiaries/Units/Joint Ventures of PSEs/Bank. (ANI)
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