Lok Sabha Question No. 3324 (UNSTARRED), answered on 2024-12-16
Subject: Disinvestment Targets
Ministry: FINANCE
Asked by: Shri K C Venugopal

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

## LOK SABHA UNSTARRED QUESTION NO. 3324

MONDAY, DECEMBER 16, 2024

AGRAHAYANA 25, 1946 (SAKA)

## Disinvestment Targets

3324. Shri K C Venugopal:

Will the Minister of FINANCE be pleased to state:

- (a) the details of disinvestment targets set and achieved by the Government during the last five financial years and the current year, year-wise;
- (b) whether the Government has any plans to disinvest any profit making PSUs to achieve its disinvestment targets for the financial year 2024-25; and
- (c) if so, the details thereof and whether the Government has any plans to reconsider its decision to disinvest any profit making PSUs?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a) : The details of Revised Estimates (RE) and actual disinvestment proceeds from Central Public Sector Enterprises (CPSEs) are given as under:

(Rs. crore)

| Year    | Revised Estimate (RE)                                                 | Actual Realisation       |
|---------|-----------------------------------------------------------------------|--------------------------|
| 2019-20 | 65,000                                                                | 50,300                   |
| 2020-21 | 32,000                                                                | 32,886                   |
| 2021-22 | 78,000                                                                | 13,534                   |
| 2022-23 | 50,000                                                                | 35,294                   |
| 2023-24 | There is no specific estimate for disinvestment receipts at RE stage  | 16,507                   |
| 2024-25 | There is no specific estimate for disinvestment receipts at BE stage. | 8,625 (as on 10.12.2024) |

Separate disinvestment target/estimate has been discontinued since the RE stage of FY 202324. During FY 2023-24, Rs.51,000 crore was estimated for disinvestment and Rs. 10,000 crore for other capital receipts at BE stage. However, at the RE stage Rs. 30,000 crore was kept under 'Miscellaneous Capital Receipts - Receipts' at the RE stage which accounted for the receipts under erstwhile categories of disinvestment and other capital receipts such as asset monetization.  During  FY  2024-25,  there  is  no  specific  estimate/target  for  disinvestment receipts.  So far, Government has realised Rs. 8,625 crore through various minority stake sale disinvestment transactions during the current financial year.

(b) & (c): Government carries out disinvestment through (i) minority stake sale and (ii) strategic disinvestment of CPSEs. Minority stake sale in CPSEs without transfer of management control is  implemented through various SEBI-approved methods such as Initial Public Offer (IPO), Offer for Sale (OFS), Buyback of shares etc., in order to unlock the value, promote public ownership, meet the minimum public shareholding norms of SEBI and for ensuring higher degree  of  accountability.  Strategic  Disinvestment  implies  entire  or  substantial  sale  of Government shareholding of a CPSE along with transfer of management control. In case of Privatization, which is a sub-set of strategic disinvestment, the Government equity in CPSE and its  management  control  is  transferred  to  a  private  strategic  buyer(s)  and  in  other  cases  of strategic disinvestment, the Govt. equity is transferred to another CPSE along with control.

The  policy  on  strategic  disinvestment/privatization  is  based  on  the  economic  principle  that Government should discontinue in sectors, where competitive markets have come of age and economic potential of such entities may be better discovered in the hands of strategic investor due  to  various  factors  such  as  infusion  of  capital,  technological  upgradation  and  efficient management practices. Profitability/loss is not among the relevant criteria for privatization/strategic disinvestment.

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. The Government, 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. Out of the 33 cases being handled by DIPAM, strategic disinvestment transactions have been completed in 10 cases (8 transactions are in CPSE to CPSE space while Air India and NINL have been privatized); 5 PSEs are under consideration for closure; 1 case held up due to litigation and 1 case is under Corporate  Insolvency  Resolution  Process  (CIRP)  in  NCLT  and  2  transactions  found  not feasible. Out of remaining 14 transactions, EoI has not been issued or transactions have been called off after issuance of EoI/RFP in case of 6 PSEs and 8 transactions are at various stages of the Strategic Disinvestment process. Details are given at Annexure-I.

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## Annexure referred in reply to the Lok Sabha Unstarred Question No. 3324 raised by Shri K C Venugopal, Hon'ble M.P regarding Disinvestment Targets.

List of PSEs and/or Subsidiaries/ Units/ Joint Ventures of PSEs and Bank for which Government has given 'in-principle' approval for strategic disinvestment since 2016.

## 1. Ongoing Transactions being processed by DIPAM wherein EoI has been issued

|   S.No. | Name of PSE                                          |
|---------|------------------------------------------------------|
|       1 | BEML Limited                                         |
|       2 | The Shipping Corporation of India Limited            |
|       3 | HLL Lifecare Limited                                 |
|       4 | Project &Development India Limited                   |
|       5 | Ferro Scrap Nigam Limited (subsidiary) #             |
|       6 | Indian Medicines Pharmaceuticals Corporation Limited |
|       7 | NMDC Steel Limited (NSL)                             |
|       8 | IDBI Bank.                                           |

## 2. Transactions where EoI has not been issued or transactions called off after issuance of EoI/RFP:

|   9. | Bharat Petroleum Corporation Ltd (except Numaligarh Refinery Limited)                                              |
|------|--------------------------------------------------------------------------------------------------------------------|
|   10 | Pawan Hans Limited                                                                                                 |
|   11 | Central Electronics Limited (CEL)                                                                                  |
|   12 | Alloy Steel Plant, Durgapur; Salem Steel Plant; Bhadrawati Steel Plant - units of Steel Authority of India Limited |
|   13 | Container Corporation of India Limited                                                                             |
|   14 | Rashtriya Ispat Nigam Ltd.                                                                                         |

## 3. Transactions being processed by respective Administrative Ministries

|   S.No. | Name of PSE                                                    |
|---------|----------------------------------------------------------------|
|      15 | Various Units of India Tourism Development Corporation Limited |
|      16 | Hindustan Antibiotics Limited                                  |
|      17 | Bengal Chemicals &Pharmaceuticals Limited                      |

## 4. Transactions halted as the  PSEs recommended / approved for closure; or any other reason

|   S.No. | Name of PSE                                                    |
|---------|----------------------------------------------------------------|
|      18 | Hindustan Fluorocarbons Limited (subsidiary) *                 |
|      19 | Scooters India Limited ^                                       |
|      20 | Bharat Pumps &Compressors Limited *                            |
|      21 | Hindustan Prefab Limited**                                     |
|      22 | Units of Cement Corporation of India Limited (Nayagaon Unit) # |

.

## 5. Transactions held up due to litigation

|   S.No. | Name of PSE                                    |
|---------|------------------------------------------------|
|      23 | Karnataka Antibiotics &Pharmaceuticals Limited |

## 6. Under Corporate Insolvency Resolution Process (CIRP) in NCLT

|   S.No. | Name of PSE                                |
|---------|--------------------------------------------|
|      24 | Hindustan Newsprint Limited (subsidiary)** |

## 7. Transactions not feasible.

|   S.No. | Name of PSE                             |
|---------|-----------------------------------------|
|      25 | Engineering Project (India) Limited     |
|      26 | Bridge and Roof Company (India) Limited |

## 8. Transactions Completed

|   S.No. | Name of PSE                                               |
|---------|-----------------------------------------------------------|
|      27 | Hindustan Petroleum Corporation Limited (HPCL)            |
|      28 | Rural Electrification Corporation Limited (REC)           |
|      29 | HSCC(India) Limited                                       |
|      30 | National Projects Construction Corporation Limited (NPCC) |
|      31 | Dredging Corporation of India Limited (DCIL)              |
|      32 | THDC India Limited (THDC)                                 |
|      33 | North Eastern Electric Power Corporation Limited (NEEPCO) |
|      34 | Kamrajar Port Limited                                     |
|      35 | Air India ^^                                              |
|      36 | Neelachal Ispat Nigam Limited (NINL)                      |

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