Lok Sabha Question No. 55 (UNSTARRED), answered on 2021-07-19
Subject: Disinvestment Target
Ministry: FINANCE
Asked by: T.N. Prathapan

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF INVESTMENT AND PUBLIC ASSET MANAGEMENT

## LOK SABHA UNSTARRED QUESTION NO. 55

TO BE ANSWERED ON MONDAY, JULY19, 2021 ASHADHA 28, 1943 (SAKA)

## Disinvestment Target

## 55.SHRI T. N. PRATHAPAN:

Will the Minister of Finance be pleased to state:

- (a ) whether the budgeted disinvestment target for 2020-21 will be met as per the Government's assessment;
- (b) if so, the details thereof and, if not, the reasons therefor;
- (c) the proportion of the disinvestment target for 2020-21 which has been achieved as on January 15, 2021, in percentage terms;
- (d)  whether receipts from disinvestment as a proportion of the total budget have declined since 2014;
- (e) if so, the reasons therefor; and
- (f) the total disinvestment receipts as a proportion of total receipts for each financial year since 2014?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (DR. BHAGWAT KISHANRAO KARAD)

(a) and (b) :  The Revised Estimate (RE) for disinvestment receipts in 2020-21 was Rs. 32,000 crore.  The  actual  disinvestment  receipts  during  the  year  was  Rs.32,845  crore.  Due  to  volatile market conditions arising from COVID-19, the Revised Estimates were significantly lower than the Budget Estimates for 2020-21.

(c): As on 31.03.2021, Government has realized disinvestment receipt of Rs. 32,845 crore which is around 103% of Revised Estimate (RE) in 2020-21.

(d) to (f): During the period 2014-15 to 2020-21, disinvestment receipts as a proportion of total budget has varied. Disinvestment of GOI equity in CPSEs depends largely on market sentiment,

investor  interest,  and  market  valuation  of  CPSE  stocks.  With  disinvestment  over  a  period  of time, the scope of minority stake sale has declined. Going forward, privatization would be the primary mode for disinvestment receipts. The details of disinvestment receipts as a proportion of total budget receipts (revenue and capital receipts) for each financial year since 2014-15 are as follows:

(Rs. in crore)

| Year    |   Disinvestment Receipts | Total Budget Receipts (revenue+capital)   | Disinvestment Receipts as %of total receipts   |
|---------|--------------------------|-------------------------------------------|------------------------------------------------|
| 24349   |                  1585921 | 1.54%                                     | 2014-15                                        |
| 23997   |                  1774434 | 1.35%                                     | 2015-16                                        |
| 46247   |                  1984089 | 2.33%                                     | 2016-17                                        |
| 100057  |                  2137882 | 4.68%                                     | 2017-18                                        |
| 84972   |                  2316434 | 3.67%                                     | 2018-19                                        |
| 50299   |                  2681360 | 1.88%                                     | 2019-20                                        |
| 2020-21 |                    32845 | 3467663 0.95%                             |                                                |

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