Lok Sabha Question No. 2078 (UNSTARRED), answered on 2017-07-28
Subject: Achieving of Disinvestment Targets
Ministry: FINANCE
Asked by: YERRAM VENKATA SUBBAREDDY

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF INVESTMENT

## AND PUBLIC ASSET MANAGEMENT

## LOKSABHA

TO BE ANSWERED ON FRIDAY, JULY 28, 2017

## UNSTARRED QUESTION NO. 2078 SHARA VANA 6, 1939 (SAKA)

## Achievmg of Dismvestment Targets

2078 SHRI Y V SUBBA REDDY

Will the Munster of FINANCE be pleased to state

- (a) the details of disinvestment targets set In the last three years and the current year, year-wise and PSU-wlse,
- (b) whether the year-wise target for disinvestment has not been achieved every year dunng the last three years and If so, the details thereof and the reasons therefor, and
- (c) the steps taken by the Government for achreving a mammoth Rs 72,000 crores disinvestment target set for current fiscal?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ARJUN RAM MEGHWAL)

(a) & (b) The details of Central Public Sector Enterpnses' (CPSEs) diSInvestment targets & achievements dunng the last three years and current financial year are as under

(In Rs Crore)

| SNo   | Fmancial year   | Target for DISinvestment of CPSEs    | Target for DISinvestment of CPSEs   | Proceeds from DISinvestment   |
|-------|-----------------|--------------------------------------|-------------------------------------|-------------------------------|
|       |                 | Budget Estimate                      | Revised Estimate                    |                               |
| 1     | 2014-15         | 43,425                               | 26,353                              | 24,349                        |
| 2     | 2015-16         | 41,000 (for drsmvestment ofCPSEs)    | 25,313                              | 23,997                        |
|       |                 | 28,500 (for strategic disinvestment) | -                                   | -                             |
| 3     | 2016-17         | 36,000 (for dismvestment ofCPSEs)    | 40,000                              | 35,468                        |
|       |                 | 20,500 (for strategic dismvestment)  | 5,500                               | 10,779                        |

The budget estimate (BE) for drsmvestment during the year 2017-18 ISRs 72,500 crore This comprises Rs 46,500 crore from drsmvestment of Central Public Sector Enterpnses (CPSEs), Rs 15,000 crore from Strategic drsmvestment and Rs 11,000 crore from hsnng of Insurance Compames

PSU-wlse annual targets are not fixed for CPSEs' dismvestment

·

·

The entire process for CPSEs' dismvestment ISoperated 10an environment which cannot be predicted The actual reahzation from CPSEs' disinvestment depends on the prevaihng market condrtions and as per the policy and commitment, the Government looks for nght opportunity for drsmvestment transactrons and moves ahead 10a prudent manner

(c) In order to achieve the dismvestment target of financial year 2017-18, the following steps have been taken by the Government

- (I) An amount ofRs 7897 crore has been realized from disinvestment of HCL, NALCO, HUDCO, OIL and RCFL and disinvestment of Government's holding 10 Specified Undertaking of the Umt Trust of India (SUUT!)
- (n) Some CPSEs have been Identified for dismvestment 10sectors like mmeral and metal 011,energy, capital goods as well as some mid-size and small stocks
- (111) The Government on 12042017 has approved IIst10g of 11 CPSEs on stock exchanges Further action, as per the extant Act, Rules and Regulations, ISbemg taken for timely hstmg of these CPSEs on stock exchanges
- (IV) As announced 10the Budget 2017-18, Government has also approved the hstmg of General Insurance Companies owned by the Government The process of IIst10gof General Insurance Corporation of India and the New India Assurance Co Lirmted has been mmated accordingly
- (v) The process of strategic dismvestment of some CPSEs, units of CPSEs and subsidianes CPSEs has been mttiated as per the procedure and mechanism approved byCCEA

*****