The plan to privatise some of the banks like Punjab & Sind Bank, Indian Overseas Bank and Bank of Maharashtra is downright outlandish
Experts suggest that the government should pause the bidding process till the pandemic ebbs
The minister also assured the employees at Air India that their requirements would be foremost in the airline and factored in whatever arrangement is decided with the successor.
Assuming that the government does achieve its budgeted disinvestment target, it is important to see how the proceeds are put to use.
It’s time the government found a mechanism to log out and use the saved resources for healthcare and education.
The last thing the government should do is hasten the process of disinvestment to be able to use the proceeds to turn in a respectable fiscal deficit figure by March 31
The pessimism relating to disinvestment has its origin in the way stake sales have been conducted.
The land and stake sale is expected to be completed by FY20-end
Here's an insight on what exactly disinvestment means.
The Cabinet on Wednesday approved a strategic divestment of the government's 53.29 per cent stake in BPCL, along with transfer of certain management control. This is excluding BPCL's equity share holding of 61 per cent stake in Numaligarh Refinery.
There is a possibility of government selling its 53.29 per cent stake along with management control in oil marketing and refining firm for about USD 10 billion (around Rs 70,900 crore)
The government should seriously think of selling its stake in loss-making entities operating in the non-strategic sector
Sources said that the government is also looking at selling its minority stakes in companies such as Hindustan Zinc and Vedanta.
Exchange-traded funds (ETFs) are likely to be the mainstay of the disinvestment programme in FY20 as it contributed 53 percent of the disinvestment receipts in FY19
Sitharaman in her speech said that the government has been following the policy of disinvestment in non-financial public sector undertakings without taking the government's stake below 51 percent.
The progress of privatisation in India has been quite slow, although the disinvestment process accelerated under the NDA 2 regime
In the past 10 years, the disinvestment target has been realised only twice, in the most recent two fiscals.
Former Finance Minister Arun Jaitley in March had announced that the government exceeded its disinvestment target for FY18-19 by Rs 5,000 crore, as the proceeds touched Rs 85,000 crore.
Raiding the balance sheet of PSUs and forcing them to buy other state-owned companies will not help in the long run and is best avoided
Despite the evidence that economic reforms have helped increase growth, progress on this front has remained slow
The base issue size was fixed at Rs 3,500 crore. Since it received an overwhelming response, the government has decided to retain Rs 10,000 crore as divestment proceeds.
Department of Economic Affairs Secretary Subhash Chandra Garg tells Moneycontrol in an interview that the government will achieve the targetted Rs 80,000 crore of disinvestment revenues in 2018-19
"The government received over Rs 1 lakh crore from disinvestment proceeds during 2017-18. We are confident of crossing the target of Rs 80,000 crore this year," said interim FM Piyush Goyal.