Disinvestment is showing good signs and the disinvestment department has announced that in the year 2010-2011, it will raise around Rs. 40000 crore from this process. The department is optimistic that it will be able to meet the target set by the Finance Ministry of India.
Sumit Bose, the disinvestment secretary, said, “Those Rs 40,000 crore are estimates and we will certainly meet them.” He was talking to journalists and gave theses estimates in response to a question about the possibility of the accomplishment of the target set by the government in this issue.
Finance Minister Pranab Mukherjee has increased the target of income to be raised from disinvestment in CPSUs by Rs. 15,000 crore for the year ending on 31st March, 2011.
According to Sumit Bose, the department will be reviewing its situation. They plan to take each of the disinvestment case individually. When inquired about the roadmap of the department in the next 12 months, he said, “Can we have a roadmap for the entire year? No. And why should the government comment about something 12 months ahead?”
In the last fiscal year, the department has done disinvestment of companies like Oil India and NHPC. The disinvestment of Rural Electrification Corporation and NTPS was completed in February 2010. The follow-on issue on NDMC is opening on 10th March, 2010. There were plans for the disinvestment of Satluj Jal Vidyut Nigam in this fiscal year, but it has now been postponed till next fiscal year. There are also plans for the disinvestment of Engineers India which has got the approval from the Cabinet.
The Cabinet has decided that all public sector units which are listed and profitable should have a public holding of a minimum of 10% and all the unlisted CPSUs shall be listed in the coming years. This decision has brought about 60 government-owned units under the criteria of disinvestment.
Few days ago, Sunil Mitra who is presently the revenue secretary and ex-disinvestment secretary, said that CPSUs such as BSNL, SAIL and Coal India are expected to be disinvested in the coming year.
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