The government also raised around Rs 14,500 crore after state-run Power Finance Corporation (PFC) acquired all 52.63 percent shares of Rural Electrification Corporation (REC)New Delhi: The government on Friday announced that it has surpassed its disinvestment target for this financial year by Rs 5,000 crore and the total proceeds so far have reached Rs 85,000 crore. Several domestic ratings agencies, however, had estimated that the government was likely to miss its disinvestment target for this fiscal. "As against a target of Rs 80,000 crore for disinvestment for the current year, the divestment receipts have touched Rs 85,000 crores today," Finance Minister Arun Jaitley tweeted.
Govt earns Rs 14,500 crore after PFC’s acquisition of REC
Pushing disinvestment proceeds above the target, the government earlier this week raised approximately Rs 14,500 crore after state-run Power Finance Corporation (PFC) acquired all 52.63 percent shares of Rural Electrification Corporation (REC). The Cabinet Committee on Economic Affairs had approved the strategic sale of REC’s paid-up equity shareholding, held by the President of India, to PFC, as well as a transfer of management control on December 6.
Rs 9,500 crore raised from 5th tranche of CPSE ETF
The government has earned Rs 9,500 crore more from the fifth tranche of Central Public Sector Enterprises (CPSE) Exchange Traded Fund (ETF). Moreover, the government also generated more than Rs 1 lakh crore in 2017-18 by divesting its stake in public sector undertakings.
The next financial year’s disinvestment target has been set at Rs 90,000 crore.
PSU Watch is a business news brand of 27 Frames Communications LLP. It places the spotlight on PSUs, Governance, Bureaucracy, Defence and Public Policy as the sector traverses through a period of radical change.