Recently, the Ministry of Finance announced that the government is working on completing the stake sale process of about 23 public sector companies whose divestment had already been cleared by the Cabinet.
Disinvestment
Disinvestment means the sale or liquidation of assets by the government, usually Central and state public sector enterprises, projects, or other fixed assets.
The government undertakes disinvestment to reduce the fiscal burden on the exchequer, or to raise money for meeting specific needs, such as to bridge the revenue shortfall from other regular sources.
In some cases, disinvestment may be done to privatize assets. However, not all disinvestment is privatization.
Budget 2021-22 on Disinvestment
Various sectors will be classified as strategic and non-strategic sectors.
The strategic sectors classified are:
Atomic energy, Space and Defence
Transport and Telecommunications
Power, Petroleum, Coal, and other minerals
Banking, Insurance, and financial services
In strategic sectors, there will be the bare minimum presence of the public sector enterprises. The remaining CPSEs in the strategic sector will be privatized or merged or subsidiarity with other CPSEs or closed.
In non-strategic sectors, CPSEs will be privatized, otherwise shall be closed
Recently, the Ministry of Finance announced that the government is working on completing the stake sale process of about 23 public sector companies whose divestment had already been cleared by the Cabinet.
Disinvestment
Disinvestment means sale or liquidation of assets by the government, usually Central and state public sector enterprises, projects, or other fixed assets.
The government undertakes disinvestment to reduce the fiscal burden on the exchequer, or to raise money for meeting specifi c needs, such as to bridge the revenue shortfall from other regular sources.
In some cases, disinvestment may be done to privatise assets. However, not all disinvestment is privatisation.
Budget 2021-22 on Disinvestment
Various sectors will be classified as strategic and non-strategic sectors.
The strategic sectors classified are:
. Atomic energy, Space and Defence
. Transport and Telecommunications
. Power, Petroleum, Coal and other minerals
. Banking, Insurance and financial services
In strategic sectors, there will be bare minimum presence of the public sector enterprises. The remaining CPSEs in the strategic sector will be privatised or merged or subsidiarity with other CPSEs or closed.
In non-strategic sectors, CPSEs will be privatised, otherwise shall be closed.
Sagar
Context:
Recently, the Ministry of Finance announced that the government is working on completing the stake sale process of about 23 public sector companies whose divestment had already been cleared by the Cabinet.
Disinvestment
Budget 2021-22 on Disinvestment
Context:
Recently, the Ministry of Finance announced that the government is working on completing the stake sale process of about 23 public sector companies whose divestment had already been cleared by the Cabinet.
Disinvestment
Budget 2021-22 on Disinvestment