SME Times is powered by   
Search News
Just in:   • Telcos with 4G network will have to invest less for 5G services: TRAI  • NITI urges banks to pass on RBI rate cut benefits  • Forex reserves rises by $150 mn to $398 bn  • Microsoft workers ask Nadella to scrap US Army HoloLens contract  • Qlik to acquire Attunity for nearly $560 mn 
Last updated: 19 Jan, 2019  

Dollar.Investment.9.Thmb.jpg Centre may miss divestment, fiscal deficit targets

Dollar.Investment.9.jpg
   Top Stories
» NITI urges banks to pass on RBI rate cut benefits
» Forex reserves rises by $150 mn to $398 bn
» 'Despite Brexit, EU to remain India's largest trading partner'
» India-Ethiopia innovation, science-tech program launched
» Prabhu dedicates 1000 cr worth projects to nation
SME Times News Bureau | 19 Jan, 2019

The disinvestment target of Rs 80,000 crore set by it is unlikely to be met by the Centre, said Care Ratings said on Friday.

The fiscal deficit will come in at 3.5 per cent as against the targeted 3.3 per cent, signifying a slippage of around Rs 20,000 crore, Care Ratings added.

"In this fiscal year, meeting the disinvestment target of Rs 80,000 crore will be challenging given the volatile conditions in the financial markets. We expect that disinvestment proceeds could be around Rs 60,000 crore for FY19," said the report titled 'Disinvestments in CPSEs - Hits and misses.'

"The disinvestment proceeds have fallen short of the targeted disinvestment by the Central government for the past five years, except in FY18. On an average, the government has achieved nearly 65 per cent of the budgeted disinvestment during FY14-FY17. In FY14, the disinvestment proceeds were merely 53 per cent of the budgeted target, lowest in all the years," it said.

In the last fiscal, total disinvestment proceeds came in at Rs 1 lakh crore, exceeding the budgeted target of Rs 72,500 crore, the report added.

It also said that with a little over two months to go for the fiscal year-end, the government had raised Rs 32,142 crore, or 43 per cent of the target by December.

Of this, Rs 25,325 crore has been raised through the Central Public Sector Enterprises Exchange Traded Fund (CPSE-ETF) the mechanism allowing the simultaneous sale of government stake in various CPSEs across diverse sectors through a single offer.

Among the various divestment routes, the offer-for-sale comes second in realisations with Rs 5,218 crore, followed by over Rs 1,500 crore raised through share buybacks.

To make up the shortfall, the government has decided to come up with another tranche of ETF with the Bharat 22 ETF offer and can raise about Rs 14,000 crore by selling 52.63 per cent stake in Rural Electrification Corp, the report said.

It can attempt to raise another Rs 12,000 crore through share buybacks of state-run units in a context limited by the volatility in the markets, it added.

 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 23 Feb, 2019
  Daily Poll
Is counterfeiting a major threat to SMEs?
 Yes
 No
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(1)
» RCom stock up 10% as company reaches agreement with lenders(1)
» Poor digitization in logistics hurting MSMEs: Shyplite co-founder(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter