Ministry of Finance

Posted On: 05 JUL 2019 1:42PM by PIB Delhi

Government is setting an enhanced target of ₹ 1,05,000 crore of disinvestment receipts for the financial year 2019-20 said the Union Minister of Finance & Corporate Affairs Smt. Nirmala Sitharaman while presenting the Union Budget 2019-20 in Parliament today. She further informed that Government will undertake strategic sale of PSUs and continue to do consolidation of PSUs in the non-financial space as well.

She informed that the Government has been following the policy of disinvestment in non-financial public sector undertakings maintaining Government stake not to go below 51%. Government is considering, in case where the Undertaking is still to be retained in Government control, to go below 51% to an appropriate level on case to case basis. Government has also decided to modify present policy of retaining 51% Government stake to retaining 51% stake inclusive of the stake of Government controlled institutions.

The Finance Minister said that “strategic disinvestment of select CPSEs would continue to remain a priority of this Government. In view of current macro-economic parameters, Government would not only re-initiate the process of strategic disinvestment of Air India, but would offer more CPSEs for strategic participation by the private sector.”

******

DSM/RM/BB/RJ/SK/SK

Strategic disinvestment: government to reinitiate Air India sale and expand private participation under revised ownership policy. Government will reinitiate strategic disinvestment of Air India and offer more CPSEs for private participation, while pursuing consolidation of PSUs. The policy on retaining a 51% government stake may be relaxed case-by-case to allow holdings below 51% where control is to be retained, and the 51% retention principle is to be read inclusive of stakes held by government-controlled institutions.