Lok Sabha Question No. 179 (UNSTARRED), answered on 2025-07-21
Subject: Disinvestment of Loss Making PSUs
Ministry: FINANCE
Asked by: Shri Rao Rajendra Singh

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

## LOK SABHA

## UNSTARRED QUESTION NO. 179

TO BE ANSWERED ON MONDAY, JULY 21, 2025 ASHADHA 30, 1947 (SAKA)

## Disinvestment of Loss Making PSUs

## 179. Shri Rao Rajendra Singh:

Will the Minister of FINANCE be pleased to state:

- (a)  the  details  of  targets  and  achievements  made  by  the  Government  through disinvestment process during the last five years;
- (b) whether the Government has been successful in making disinvestment of its stakes in loss-making PSUs during the last three years and if so, the details thereof; and
- (c) the names of PSUs, especially Public Sector Banks (PSBs) which the Government proposes to disinvest along with the amount likely to be received therefrom and the reasons  due  to  which  the  Government  is  contemplating  to  disinvest  from  such organisations?

## ANSWER

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

- (a): Revised Estimate and Actual Realisation of disinvestment proceeds for the last five years are given as under:

(Rs. crore)

| Year    | Revised Estimate (RE)   | Actual Realisation   |
|---------|-------------------------|----------------------|
| 2020-21 | 32,000                  | 32,886               |
| 2021-22 | 78,000                  | 13,534               |
| 2022-23 | 50,000                  | 35,294               |
| 2023-24 |                         | 16,507               |

| Year    | Revised Estimate (RE)                                  | Actual Realisation   |
|---------|--------------------------------------------------------|----------------------|
| 2024-25 | There is no specific target for disinvestment receipts | 10,163               |

Fixing  separate  disinvestment  targets  has  been  discontinued  since  the  Revised Estimate  (RE)  of  FY  2023-24.  However,  Rs.  30,000  crore,  Rs.33,000  crore  and Rs.47,000  crore  kept  under  Miscellaneous  Capital  Receipts  for  RE  2023-24,  RE 2024-25 and BE 2025-26 respectively, which includes estimated receipts on account of management of equity investments and public assets through various mechanisms.

(b) & (c): Government carries out disinvestment in Public Sector Enterprises (PSEs) through  (i)  Minority  Stake  Sale  through  various  SEBI-approved  methods  such  as Initial  Public  Offer  (IPO),  Offer  for  Sale  (OFS),  Buyback  of  shares  etc.  and  (ii) Strategic Disinvestment i.e. entire or substantial sale of Government shareholding to a strategic buyer along with transfer of management control.

The policy on strategic disinvestment/privatization is based on the economic principle that  Government should minimize presence in sectors, where competitive private sector  has  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, efficient management practices etc. Profitability/loss is not among  the relevant criteria for privatization/strategic disinvestment.  The following CPSEs were strategically disinvested during the last four years.

|   S. No | Financial Year   | Name of the CPSE /Entity                         | Profit /Loss making at the time of privatisation   |
|---------|------------------|--------------------------------------------------|----------------------------------------------------|
|       1 | 2021-22          | Air India and its subsidiary AIXL and AISATS(JV) | Loss making                                        |

|   2 | 2022-23   | Neelachal Ispat Nigam Limited (NINL)                        | Loss making   |
|-----|-----------|-------------------------------------------------------------|---------------|
|   3 | 2024-25   | Ferro Scrap Nigam Limited (FSNL), a subsidiary of MSTC Ltd. | Profit making |

As far as PSBs/Banks are concerned, the IDBI Bank is under strategic disinvestment with transfer of management control. For other PSEs/Banks, disinvestment through minority stake sale is carried out through various SEBI-approved methods from time to time based on prevailing market conditions in order to unlock the value, promote public ownership and meet the minimum public shareholding to ensure higher degree of accountability.

Disinvestment transaction depends upon administrative feasibility, market conditions, economic outlook and investor interest. In view of this, it is difficult to anticipate  quantum  of  actual  proceeds  from  disinvestment  during  the  current Financial Year.

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