FY20 disinvestment mop-up at Rs 50,298 cr, govt misses budget target

The government missed the collection target for the current CPSE divestment exercise set in the revised budget estimates of around 14,700 crore rupees.

During the current financial year 2019-2020, the effective raking of the divestment amounted to Rs 50,298.64 crore. In the revised estimates (RE), the government had estimated the proceeds of divestment at Rs 65,000 crore, a deficit of about Rs 14,700 crore.

In the 2019-2020 budget, divestment revenue was set at 1.05 trillion rupees. However, in the RE, the projection has been significantly lowered to Rs 65,000 crore.

During the current fiscal year, the government raised Rs 11,500 crore through a strategic divestment of THDC and NEEPCO to the public utility of electricity NTPC. In addition, the port of Kamarajar was sold for 2,383 crore rupees to the Chennai Port Trust.

While two follow-up offers from the CPSE ETF yielded 26,500 crore rupees, the Bharat-22 ETF collected 4,368 crore rupees.

Two initial public offerings (IPO) – RVNL and IRCTC – made it possible to collect 1,113 crore rupees, while the RITES sales offer (OFS) brought in 1,130 crore rupees.

The repurchase of shares by MOIL, MDL and SPMCIL brought the crore of Rs 821 to the Treasury, while the crore of Rs 600 came through transfers of funds from SUUTI. In addition, Rs 1,881 crore was bought by selling enemy stocks.

During the 2015-2016 fiscal year, the government had made 23,996.80 crore rupees thanks to the divestment of CPSE, which is lower than the budgetary objective of 69,500 crore rupees and RE of 25,312 crore of rupees.

During the 2016-2017 fiscal year, the government did not reach the budgeted disinvestment target. While the budget had set the target at 56,500 crore rupees, the government was able to mop up 46,247 crore rupees. This amount was however higher than the target set in RE at Rs 45,500 crore.

In 2017-2018, he improved the target by 1 trillion rupees and raised a record crore of 1000056 rupees. In 2018-2019, the raking of divestment amounted to Rs 84,972 crore against the budgetary objective of Rs 80,000 crore.

In 2019-2020, after a gap of 2 years, the government did not reach the disinvestment target set in the budget.

For the 2020-2021 fiscal year starting on April 1, 2020, the budget fixed the proceeds of the divestment at Rs 2.10 lakh crore. This includes Rs 1.20 trillion from the sale of CPSE shares and Rs 90,000 crore from the sale of shares in public sector banks and financial institutions, including the list of LIC insurance behemoths.

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