Budget 2024: The government has given clarification regarding not being able to meet the disinvestment target. DIPAM (Department of Investment and Public Asset Management) Secretary Tuhin Kanta Pandey said that before disinvestment, the government's aim is unlocking the value of government companies. He told that in the three years financial year 2020-21, the market capitalization of public sector companies and public sector banks listed on the stock exchange was Rs 15 lakh crore, which has today increased to Rs 58 lakh crore. He said that the value of government companies has increased by Rs 25 lakh crore in just one year.
Value increased by Rs 42 lakh crore in 3 years
In the post-budget press conference, the Finance Minister was asked a question about not being able to meet the disinvestment target. In response to this question, DIPAM Secretary Tuhin Kanta Pandey said that the government's aim is to unlock the value of government companies before disinvestment. He said that a total of 61 PSU companies and 16 public sector banks are listed on the stock exchange. In 2020-21, the stock market valuation of these companies used to be only Rs 15 lakh crore, which has increased to Rs 58 lakh crore. The market value of these companies has increased by Rs 42 lakh crore. The value of government companies has increased by Rs 25 lakh crore in one year. Tuhin Kanta Pandey said that due to increase in the value of government companies, the government has shared the assets with all the small investors. He said that the government's principle before disinvestment is value unlocking.
Government will not sell shares at cheap prices
Tuhin Kanta Pandey said that after 2014, the government has raised Rs 4.2 lakh crore from disinvestment and has received dividend of Rs 4 lakh crore from government companies. He said that before disinvestment of any government company, its value will have to be increased after which disinvestment will be done in a phased manner. He said that it is not that we will sell shares of government companies at any price.
Government did not give target for disinvestment
Actually, the Modi government is failing to meet the disinvestment target set in the budget. In 2023-24, the government had set a target of raising Rs 51,000 crore through disinvestment, which has been reduced to Rs 30,000 crore in the revised estimate. This is when the stocks of government companies are touching heights in the stock market. Despite this, the government has proved unsuccessful in not achieving the target of disinvestment. Tuhin Kanta Pandey said that hence the government has not set any target for disinvestment.
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