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

TRP-driven model bred irresponsibility: Sudhir Chaudhary

News profession is organic in nature, requires responsibility and discipline, and there is no room for mistake. To maintain high standards of accuracy you need discipline and hygiene in the newsroom. Sudhir Chaudhary, editor in chief of Zee News, Zee Business and Wion, has said that a TRP-driven business m

This Mumbai NGO empowers children with skills

When Dharmendra Pandey, a fruit-seller had to leave Mumbai after the imposition of the lockdown during the Covid-19 pandemic, and return to his village in Uttar Pradesh, he was staring at economic uncertainties ahead. Little did he know that his 16-year-old son, Mahavir, had acquired skills that would come

Masks: Awareness: near-total, compliance: half-way

Wearing a face mask is the first line of defence against the novel coronavirus, along with maintaining social distance and frequently washing hands with soap. More than six months after the outbreak of Covid-19, nearly 90 percent of people in India have become aware of the necessity of wearing a face mask,

Covid-19: Daily recoveries cross 1 lakh mark, new cases far fewer

Is India finally gaining an upper hand over the Covid-19 pandemic? After weeks of new cases hitting 90,000-plus every day, the tide seems to be turning, as the number came down to 75,083 on Tuesday, and the recoveries were not only higher than that but crossed the 1 lakh mark too. The countr

A travelogue of an inner pilgrimage

Sit Your Self Down A Novice’s Journey into the Heart of Vipassana By Gayatri Jayaraman Hachette India, 212 pages, Rs 399   As stress and strife increase in daily life, more and more people are turning to meditation as an all

Vote in the time of Covid: EC hosts global webinar

On completion of one year of the chairmanship of the Association of World Election Bodies (A-WEB), the Election Commission (EC) of India on Monday hosted an international webinar on the theme of “Issues, Challenges and Protocols for Conducting  Elections during COVID-19 : Sharing Country

Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter