Government sets record high CPSE stake sale target of Rs 1.05L crores

New Delhi: The government will initiate privatisation of CPSEs, including Air India, as it sets a record high disinvestment target of Rs 1.05 lakh crore that will see the government lowering its stake in some CPSEs to below 51 per cent.

While strategic sale will entail outright privatisation in some CPSEs, the government's direct holding can be brought down below 51 per cent but the effective control will remain with the government after considering holding of other state-owned entities, like Life Insurance Corporation.

Presenting the Budget 2019-20, Finance Minister Nirmala Sitharaman said the government has been following the policy of disinvestment in non-financial public sector undertakings maintaining the government stake not to go below 51 per cent.

"The government is considering, in case where the undertaking is still to be retained in government control, to go below 51 per cent to an appropriate level on case to case basis.

Government has also decided to modify present policy of retaining 51 per cent government stake to retaining 51 per cent stake inclusive of the stake of government-controlled institutions," she said.

The government has set an all-time high disinvestment target of Rs 1.05 lakh crore, up from Rs 90,000 crore projected in Interim Budget 2019-20 in February.

In 2018-19, the government raised Rs 84,972 crore from CPSE disinvestment, while in 2017-18, the figure was Rs 1,00,056 crore.