The Finance Ministry’s head office (Mint via Getty Images)The Union government on Friday (23 March) announced that its divestment proceeds for the current financial year (FY19) exceeded the targets, with receipts of Rs 85,000 crores generated through the sale of stakes in central public sector units (CPSUs).
These divestment figures received a boost with Power Finance Corporation (PFC) completing the purchase of the government’s stake in Rural Electrification Corporation (REC). “PFC today sealed a deal to acquire 52.63% stake of GoI in REC, as its bid of ₹14,499.99 crore (@ ₹139.50 per share) was accepted along with transfer of management control,” tweeted the DIPAM secretary on 20 March.
Department of Investment Promotion and Management (DIPAM) works under the Union Ministry of Finance and is tasked with overseeing the divestment of Central Public Sector Units (CPSUs).
Promoting Marketism
Since coming to power in 2014, the NDA government at the Centre has expedited the divestment process to not only raise additional funds for social welfare schemes but also to promote efficiency in the public sector. According to data released by DIPAM, 58 per cent of the total divestment proceeds since the liberalisation of 1991, were earned under the present NDA government.
Out of the Rs 3.63 lakh crore earned by various governments since 1991 as part of their divestment agenda, Rs 2.1 lakh crore came in the last four years under the Modi government.
An Appeal...
Dear Reader,
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.