Union Budget 2018: In the Union Budget 2018, Finance Minister Arun Jaitley announced a modest increase in disnvestment target to Rs 80,000 crore for FY 18-19. Earlier, it was expected that Finance Minister Arun Jaitley would set a steeper disinvestment target for FY19.
Union Budget 2018: In the Union Budget 2018, Finance Minister Arun Jaitley announced a modest increase in disnvestment target to Rs 80,000 crore for FY 18-19. Earlier, it was expected that Finance Minister Arun Jaitley would set a steeper disinvestment target for FY19. India’s disinvestment target for the year 2017-18 was Rs 72,500 crore, of which, as on January 22, Rs 55,560.73 crore has been achieved, and with ONGC-HPCL deal Rs 36,915 crore, the government is not merely set to achieve the goal for the first time, but also surpass it by a wide margin.
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According to a PTI report, with the government’s stake sale in HPCL, the government’s disinvestment receipt will work out to be at least Rs 91,252.6 crore. The target is understood to have been achieved well before the disinvestment of Air India, IRCTC and several insurance companies, and the government has a case for an increase in the target for the fiscal year 2018-19.
Buoyed by this year’s bumper sales and with India’s stock markets at record highs, market participants had expected Arun Jaitley to unveil an asset-sale target of between Rs 60,000 crore and Rs 1.2 lakh crore in Union Budget 2019.
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n June last year, the government gave an in-principle approval for the strategic disinvestment of Air India. The government is working on the modalities for the stake sale, and also approved a 49% Foreign Direct Investment (FDI). The Union Cabinet also approved the listing of five state-run general insurance companies, of which only two have been materialised so far, and three more are likely to be taken up in the next fiscal year.
Railway PSUs — IRCON, IRFC and IRCTC — are unlikely to get listed in the current fiscal and may be taken up in the next fiscal, while two companies — RITES Ltd and Mishra Dhatu Nigam Ltd — filed draft papers with markets regulator Sebi to float initial public offerings earlier this month. The move comes after another state-run Indian Renewable Energy Development Agency (IREDA) approached the markets regulator last month with its IPO papers.