Disinvestment targets: Will the Government meet the targets?
In the last 5 years, the Government fell way short of the initial budgeted receipts under disinvestments. As per Budget 2015-16, the disinvestment target for the year is Rs 69,500 crore - Rs 41,000 crore from stake sales and Rs 28,500 crore in strategic disinvestments (from sale of loss-making public sector units or other unviable assets). Only Rs, 3,210 crore has been realized under the stake sales with strategic disinvestment yet to kick off. It is worth noting that total of Rs. 6,344 crores has been realized in strategic sales during the first NDA period. While stake sales worth Rs. 50,000 crores has been approved earlier this year, the real challenge lies in strategic disinvestments. During FY 2013-14, 71 Central Public Sector Enterprise (CPSEs) have incurred losses. The number of CPSEs have increased from 5 in 1950 to 290 in 2014. The Government is still incurring huge costs with a total of Rs. 40,885 crores approved to revive sick PSUs apart from waiver of loan, interest write off and refund of upfront charges by the Government for loss making BSNL, MTNL and Air India. Strategic sales have to be prioritized and it falls in the theme of "Minimum Government, Maximum Governance"