Centre to go ahead with disinvestment of 23 PSUs cleared by the cabinet
For the fiscal year, 2020-21, the central government has set a disinvestment target of Rs. 2.10 lakh crore. Out of this, Rs. 1.20 lakh crore will come from the disinvestment of PSUs.
Finance Minister, Nirmala Sitharaman announced on July 27 that the central government has been working on completing the stake sale process of about 23 public sector companies whose disinvestment has been cleared by the cabinet.
The Union Minister also mentioned that she will soon meet small finance firms and the non-banking finance companies (NBFCs) in order to review the credit being extended by them to businesses.
The central government as part of the Atmanirbhar Package had announced opening up of all the sectors for private participation. In those sectors which will be called strategic, the private will be allowed to come in but the public sectors will be limited to a maximum of 4 units.
Disinvestment of PSU’s by the government:
For the fiscal year, 2020-21, the central government has set a disinvestment target of Rs. 2.10 lakh crore. Out of this, Rs. 1.20 lakh crore will come from the disinvestment of PSUs and another Rs. 90,000 crores from the stake sale in financial institutions.
• There are already 22-23 PSUs which have been cleared by the cabinet for disinvestment.
• The Finance Minister has informed that the final call as to which sectors are going to be called ‘strategic’ is not made yet. The announcement will soon be made by the government.
• In the strategic sectors, the involvement of private and limited units of the public sector will lead to the consolidation of Public Sector Undertakings (PSUs) as well as will scale up their operations.
• While talking about the disinvestment plan, the finance minister informed that the government wants to sell stake in public sector companies at a time when it fetches the right price.
Plan of extending credit to the industry:
With the purpose of extending credit to the industry, Finance Minister Nirmala Sitharaman mentioned that under the Emergency Credit Line Guarantee Scheme, micro, small and medium enterprises can easily avail loans.
The total amount sanctioned, as of July 23, 2020, under the 100% Emergency Credit Line Guarantee Scheme by the private and public sector banks stands at Rs. 1,30,491.79 crore, out of which Rs. 82,065.01 crores has already been disbursed. The union minister has also asked the banks to facilitate the process, as the government has taken the risk on itself.