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

A great literary feast (that could’ve been even more sumptuous)

A Case of Indian Marvels: Dazzling Stories from the Country’s Finest Writers Edited by David Davidar Aleph, 390 pages, Rs 999 Change is the only constant, and India has always been doing so. Yet, after independence, if there was a year when the p

Govt e-Marketplace sellers report more business

“My volume of business has increased ever since I registered on GeM (Government e-Marketplace) in 2017. Earlier, I could supply items only in the vicinity of my shop in Fort area and only within Mumbai. Now, I ship my products all over the country! I have tied up with India Post and three private cou

How the Hindi Newspaper Business Changed

The Journey of Hindi Language Journalism in India: From Raj to Swaraj and Beyond By Mrinal Pande Orient BlackSwan, 188 pages, Rs 1,195.00 In India, the English-language media is considered the ‘national media’, while the language press

More reforms in telecom sector in offing: Ashwini Vaishnaw

The telecom sector in the country will witness more reforms in the coming years, minister for communications, electronics & IT and railways Ashwini Vaishnaw has said. He also asserted that the industry too will have to do its bit and reciprocate by improving quality of service significantly.

Left-wing extremism: challenges and response

Left-wing extremism is in existence right from India’s independence, but it became prominent in 1967 under the name of Naxalism. The nomenclature of this movement has changed from time to time and place to place depending upon the leadership. Before 2014 more than 15 states were facing this problem w

Agri Min organises events ahead of International Year of Millets 2023

A series of pre-launch events and initiatives have been organised by the Department of Agriculture and Farmers Welfare on the MyGov platform in the run-up to the International Year of Millets 2023 to create awareness and a sense of participation in the country  around the ancient and forgotten golden

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