Despite the Finance Minister Arun Jaitley admitting that meeting the Rs 69,500 crore disinvestment target for the fiscal year will be difficult, amid global volatility in equity and currency markets which derailed the highly ambitious PSU stake sale in the current fiscal, the government will go ahead with prudent and timely disinvestments, target for which it has said that it should not be just confined to dates. Volatile market conditions have affected the government's disinvestment plan, which mostly have commodity and oil stocks in the pipeline.
DoD Secretary Neeraj Gupta has said that the government should operate in an environment which cannot be predicted and managed to achieve the target as in present day scenario there are more pressing global issues than the domestic conditions. He further added that the government is committed to pursue the minority stake sale and disinvestment process will continue at the right environment by taking the advantage of the right opportunity.
So far this fiscal, the Department of Disinvestment (DoD) has been able to raise over Rs 13,300 crore by selling stake in five PSUs which include Rural Electrification Corp with Rs 1,608 crore, Power Finance Corp Rs 1,671 crore, Dredging Corp of India Rs 53.33 crore, Indian Oil Corp Rs 9,369 crore and Engineers India Rs 640 crore. With this, the government is likely to miss its disinvestment target for the sixth year in a row, though the disinvestment department had lined up about two dozen PSUs for stake sale and putting in place Cabinet approvals for launching the stake sale since the beginning of the year.
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