How much will Govt earn if it sells its stake in PSUs and keeps only 51% stake?

- Advertisement -

A recent report by CareEdge has highlighted the potential for stake sales in public sector enterprises to generate significant revenue for the government while maintaining majority control. The report underscores the financial opportunities and strategic considerations associated with this approach.

Key Findings:

The report reveals that stake sales in public sector enterprises could raise up to Rs 11.5 lakh crore at current market rates, with CPSEs contributing around Rs 5 trillion and PSBs and insurance firms potentially adding another Rs 6.5 lakh crore. This figure represents the maximum amount that could be raised without the government losing governance control of these entities.

Top Divestment Potential:

According to the report, Indian Railway Finance Corporation Ltd, Hindustan Aeronautics Ltd, Coal India Ltd, and Oil and Natural Gas Corporation are identified as the top firms in terms of divestment potential based on mathematical analysis.

- Advertisement -

Challenges and Considerations:

The report cautions that the decision to divest these listed firms may be influenced by various factors such as the industry’s strategic nature, companies’ profitability, financial market conditions, and welfare and social considerations. Additionally, it notes that the government has missed its disinvestment target for five consecutive years, highlighting the need for a fresh look at big-ticket divestment plans.

Outlook and Implications:

The report emphasizes the importance of achieving the disinvestment target, particularly through big-ticket divestments, and highlights the potential divestment of entities such as the Shipping Corporation of India, Pawan Hans, CONCOR, and IDBI Bank. It also acknowledges the impact of the Centre’s comfortable fiscal position and market conditions on the urgency to push ahead with significant divestment initiatives.

Conclusion:

While the conclusion of the election season and favorable market benchmarks provide an opportune moment for substantial divestment initiatives, the report acknowledges that challenges such as procedural delays, litigations, and pricing issues may continue to impede divestment progress despite favorable conditions.

- Advertisement -

Share this article...

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More News...

Latest

Finance Ministry to review Pension System, Meeting will be held on this date

Finance Ministry to review Pension System, Meeting will be held on this date

South Bihar Gramin Bank announced strike on 15 and 16 July

South Bihar Gramin Bank announced strike on 15 and 16 July

Salary of Kotak Mahindra Bank’s CEO; Check Salary, Allowances and other benefits

Salary of Kotak Mahindra Bank's CEO, Check Salary, Allowances and other benefits

Central Bank of India held Liable By NCDRC For Overcharging EMI

Central Bank of India held Liable By NCDRC For Overcharging EMI

State Consumer Commission Upholds Canara Bank’s Appeal in Motorcycle Theft Case

State Consumer Commission Upholds Canara Bank's Appeal in Motorcycle Theft Case

Consumer Case Against SBI Cards: Kolkata Commission Orders Full Compensation

Consumer Case Against SBI Cards: Kolkata Commission Orders Full Compensation

Consumer Forum Holds Union Bank of India Liable for ATM Transaction Error

Consumer Forum Holds Union Bank of India Liable for ATM Transaction Error

Bank of Maharashtra Recruitment 2024, 195 Vacancies, Download Notification PDF

Bank of Maharashtra Recruitment 2024, 195 Vacancies, Download Notification PDF

Which is the most powerful country in the world? Top 10 most powerful countries List [Updated]

Which is the most powerful country in the world? Top 10 most powerful countries List

Banker left her job to become YouTuber, She now earns Rs.8 crore a year

Banker left her job to become YouTuber, She now earns Rs.8 crore a year

Latest News