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

Gripping graphic narrative helps make sense of pandemics past

The Moral Contagion By Julia Hauser and Sarnath Banerjee HarperCollins, 140 pages, Rs 699 The world has lar

“Globally, there is unprecedented positivity for India”

Addressing the Viksit Bharat Viksit Uttar Pradesh program in Lucknow on Monday, prime minister Narendra Modi launched 14,000 projects across the state, worth more than Rs 10 lakh crore at the fourth groundbreaking ceremony of UP Global Investors Summit held in February 2023. The projects relate to sectors

World’s biggest bird-a-thon begins in India

During the four days from Feb 16, more than a thousand birdwatchers throughout India are coming together with the goal of documenting as many birds as possible across the country’s diverse locations. Over one lakh birdwatchers globally participate in the annual Great Backyard Bird Coun

Comments sought on Draft Guidelines for Prevention of Misleading Advt in Coaching Sector

The Central Consumer Protection Authority has sought public comments on the ‘Draft Guidelines for Prevention of Misleading Advertisement in Coaching Sector’. The draft guidelines are placed on the website of the Department of Consumer Affairs and are accessible through the link:

Electoral bond scheme unconstitutional: Supreme Court

In a landmark judgment, the Supreme Court of India has held the anonymous, unregulated and unlimited funding through electoral bonds and companies as unconstitutional. The five-judge Constitution Bench of the Supreme Court comprising chief justice DY Chandrachud and justices Sanjiv Khanna, B

Interim Budget and frontier technology: Sab ka Vikas, Sab ki Technology

The world is at the cusp of a revolution based on Industry 4.0 and green technologies, including AI, big data, IoT, EVs, solar power, etc., which offer developing countries the opportunity to leapfrog into economic prosperity. However, India’s gross expenditure on R&D (GERD) still stands at a mea

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter