December 13, 2020

Spiralling Sensex, Stalled Disinvestment

In this piece for the New Indian Express, Shankkar Aiyar  discusses the importance of disinvestment in bridging the income-expenditure gap for the Central government.


"Intriguingly, there is a mystifying reticence to harvest the potential of raising revenues through disinvestments. Even as the stock markets and the Sensex are spiralling, disinvestment is stalled. Consider the circumstance to appreciate the opportunity that has passed by. Between March 23 and December 11, the benchmark BSE Sensex has shot up from 26,000 points to over 46,000 points.


Has the rise in the stock prices been leveraged? Sadly that is not the case. Budget 2020 set a target of Rs 2.1 lakh crore to be raised via disinvestment of public sector entities - new ETFs, listing of entities such as LIC and strategic sales. As per the data put out by Department of Investment and Public Asset Management, the total receipt from disinvestment in the current year is Rs 6,533.11 crore."


Read the full article here.

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