Budget 2017: Govt aims for significant reforms in PSUs

The centre intends to raise Rs 72,500 crore through disinvestment of PSUs

GN Bureau | February 3, 2017


#disinvestment   #Budget 2017   #Arun Jaitely   #PSU  


The government has made a provision in the 2017-18 budget to raise Rs 72,500 crore through disinvestment of public sector undertakings (PSUs), including listing of IRCTC, IRFC and IRCON which are railway PSUs. The government’s move of merger and consolidation is aimed at creating globally competitive PSUs.

Finance minister Arun Jaitely said the government would work to devise a mechanism to ensure time-bound listing of the identified PSUs on stock exchanges.
 
Jaitely, in his budget speech, highlighted that government would be working to consolidate PSUs and create a new CPSE exchange traded fund (ETF) in 2017-18. “Our ETF comprising shares of ten CPSEs has got tremendous response. ETF would be used as a vehicle for further disinvestment of shares,” Jaitely said.

Government’s move of raising Rs 72,500 crore through disinvestment in CPSEs in the upcoming fiscal is higher than the Rs 45,500 crore raised in the current fiscal.

It seems that in the current fiscal the government would not meet the disinvestment target fixed in the budget. The government had budgeted Rs 56,500 crore to be raised through PSU disinvestment in the current fiscal.
 
“The government sees huge opportunities in consolidation, merger and acquisitions of CPSEs which would integrate such enterprises. The intended move would enable CPSEs to sustain higher risks, avail economies of scale, take higher investment decisions and create more value for the stakeholders,” Jaitley said in his budget speech.

Besides, the government has also proposed to merge a few of the state-run oil firms to create an energy behemoth to take on global giants. The move would enable world's third largest oil consumer to meet its energy requirements.

 

Comments

 

Other News

Take action, NSUI tells police over varsity clash

The National Students Union of India (NSUI) on Thursday sought action against those who had assaulted students and teachers of Delhi university at a protest march on Wednesday.` “Our sole motive is to compel the police to take some strict actions against the lawbreakers who brutally manhand

BMC polls throw up fractured mandate

 It’s a hung verdict in the elections to the BrihanMumbai Municipal Corporation, which is India’s richest civic body. Shiv Sena bagged 84 seats closely followed by BJP that won 81 seats. Congress with only 31 seats  performed badly as compared to  52 seats  that it

A poem that gives a perspective on Indian Muslims

A beautiful poem on modern Indian Muslims has caught the imagination of the social media users. “Hindustani Musalmaan” by Hussain Haidry has gone viral on the net. Not just for being crisp, but also for conveying what it means to be a Muslim in this country. There

Demonetisation posed a new challenge to growth: IMF

The Indian economy has recorded strong growth in recent years, helped by a large terms of trade gain, positive policy actions including implementation of key structural reforms, a return to normal monsoon rainfall, and reduced external vulnerabilities, said the International Monetary  Fund (IMF).

The Nirbhaya of Naliya: a gang-rape in Gujarat involving BJP leaders

  The “Forum of Concerned Citizens for Naliya Incident” sent a fact-finding team to Kutch on February 20. The members of the team were Dineshbhai Sanghvi, Meenakshi Joshi, Balendra Vaghela, Dr Jharna Pathak and advocate Shabana Mansuri. Based on their report, the Forum ha

A blotch of saffron on Indian universities

University of Hyderabad, Jawaharlal Nehru University and now University of Delhi…the free space for discourse is steadily being squeezed out of universities in India as the Rashtriya Swayamsevak Sangh (RSS) backed Akhil Bharatiya Vidyarthi Parishad (ABVP) imposes its will and forcibly blocks out alt

Video

यूपी चुनाव: सपा-बसपा समर्थकों के बीच हिंसा
Digital Transformation Summit

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter