CPSE disinvestment annual review: 21 cr realized, 60% budgetory target achieved
Published: Jan 03, 2017
TIOLCORP News Service
NEW DELHI, JAN 3, 2017: THE disinvestment target for the Current Financial Year 2016-17 has been estimated at Rs.56,500 crore comprising Rs.36,000 crore from disinvestment of CPSEs and Rs.20,500 crore from strategic disinvestment. During the current financial year 2016-17, the Government has so far realized Rs.23528.73 crore, which include Rs.21,432.38 crore through minority stake sale in 14 CPSEs and Rs. 2096.35 crore through strategic disinvestment. The total realization of Rs. 21,432.38 crore, by end-November 2016 through CPSEs' disinvestment receipts, constitutes around 59.53% of the Budgeted Target of Rs. 36,000 crore (CPSEs' disinvestment).
Various reform measures and policy initiatives have also been put in place by the Department of Investment and Public Asset Management (DIPAM). These include creating a pipeline of proposals for CPSEs to take advantage of better market condition without any loss of time, fast tracking of approval process and disinvestment programme made more inclusive by following an approach to reserve 20% of shares on PSUs-OFS transactions for retail investors on a case to case basis. Apart from the above, based on the suggestion made by the Department, SEBI has reduced the notice period for an OFS transaction from T-2 to T-1 (T being the transaction day). This will help in minimizing the possibility of price hammering between the notice day and the transaction day and suitably protecting the interest of retail investors by providing them sufficient time to participate in the OFS transaction.
As announced in the Budget, guidelines on "Capital Restructuring of CPSEs" have also been issued by this Department on May 27, 2016. These guidelines supersede all previously issued guidelines by various Ministries/Departments from time to time and comprehensively deal with the inter-related issues on payment of dividend, buy back of shares, issue of bonus shares and splitting of shares. The focus of these guidelines is on optimum utilization of funds by CPSEs/Government to spur economic growth.
The major achievements/highlights in respect of disinvestment of CPSEs are as under:
| CENTRAL PUBLIC SECTOR ENTERPRISES | AMOUNT RECEIVED BY GOVERMMENT THROUGH DISINVESTMENT (IN Rs CRORE) |
| NHPC OFS | 2,716,55 |
| MOIL Buyback | 793.87 |
| NMDC Buyback | 7,519.15 |
| BEL Buyback | 1,802.60 |
| NTPC Employee OFS | 203.78 |
| NHPC Employee OFS | 21.27 |
| DCIL Employee OFS | 0.93 |
| Buyback of shares by NALCO | 2831.71 |
| HCL OFS | 399.93 |
| Buyback of shares by CIL | 2638.24 |
| CONCOR Employees OFS | 9.34 |
| IOCL Employees OFS | 262 |
| NBCC OFS | 2201.14 |
| Disinvestment of SUUTI holdings | 2096.34 |
