Disinvestment: Out of 36 PSUs, 10 disinvested since 2016
New Delhi: In response to a question asked about the development on privatisation and disinvestment of PSUs, government said that it has disinvested and privatised 10 PSUs so far. also, the Budget Estimate for disinvestment receipts in FY 2023-24 has been kept at Rs.51,000 crore.
N. Redeppa, a member of parliament of the lower house from YSR Congress Party asked on Monday about the details of all disinvestments conducted during the last five years.
In response, MoS (finance) Dr Bhagwat Karad said that "Disinvestment is an ongoing process, and execution/completion of specific transactions hinges upon market conditions, domestic and global economic outlook, geopolitical factors, investor interest and administrative feasibility". He informed the house that since 2016, govt has been able to disinvest 8 PSUs while it has privatised 2 PSUs (Air India and Nilanchal Ispat Nigam Limited).
Interestingly, both privatised PSUs have gone to TATAs.
in response to the question whether any of the disinvested companies were profit-making at the time of disinvestment, Karad said "Of the 9 CPSEs strategically disinvested during the period 2018-19 to 2022-23, seven CPSEs were profit-making at the time of disinvestment. Minority stake sales in various CPSEs were carried out during the period as per SEBI approved methods and norms".
"Profit or loss is not among the relevant criteria for privatisation or disinvestment", he said when asked about the criteria for privatisation or disinvestment of public sector companies.
Karad further informed that "Since 2016, has given ‘in-principle’ approval for strategic disinvestment of 36 cases of PSEs and/or Subsidiaries/ Units/ Joint Ventures of PSEs/Bank. Out of the 36 cases, 33 cases are being handled by DIPAM and 3 cases are being handled by the respective administrative ministry/department".