The Centre has mobilised a whopping Rs 4.04 trillion through minority and strategic disinvestment of public sector enterprises (PSEs) along with residual stake sales in some private companies after prime minister Narendra Modi came to power in May 2014.
Also Read: State in business: Reimagining divestment
Of this, the largest contribution of Rs 1.07 trillion or 26.58% of the total was through 59 offers for sales (OFS). Disinvestment through Exchange Traded Fund (ETF) in 10 tranches worth Rs 98,949 crore was the second biggest contributor (24.45% of the total), the finance ministry said.
Also Read: Rs 60k cr sell-off goal likely in FY24
Strategic disinvestment in 10 companies, including Air India, generated Rs 69,412 crore (17.15%) during 2014-2022. The government listed as many as 17 PSEs during the nine-year period, which yielded Rs 50,386 crore (12.45%). Of this, the initial public offering of Life Insurance Corporation fetched Rs 20,516 crore. This new listing of PSEs resulted in an additional market capitalisation of Rs 7.31 trillion, the ministry said. Share buyback by companies in 45 cases fetched Rs 45,104 crore (11.15%). Other transactions in 11 cases including 16.12% residual stake sale in Tata Communications, Reliance Industries and Paradeep Phosphate, fetched Rs 33,261 crore during 2014-2022.
