The Standing Committee on Finance has asked the Department of Investment and Public Asset Management (DIPAM) to publish an annual report highlighting how it has managed public assets and “whether it is creating value or eroded value” of public sector enterprises.
The Parliamentary panel chaired by BJP member Jayant Sinha, in its report tabled in Parliament on Tuesday, said disinvestment target is pivotal to the Budget. Pointing out that wavering from the estimates may lead to quantum change in the fiscal dynamics, the panel desired that disinvestment becomes “more credible, purposeful and transparent.”
The DIPAM told the panel that setting up unrealistic disinvestment targets purely to address fiscal deficit is not in the best financial interests of the government, as it may lead to value erosion of CPSE stocks due to likely price overhang in anticipation of likely disinvestment by the market-makers.
In the revised estimate (RE) for FY22, the government has scaled down the disinvestment receipt for the current financial year to Rs 78,000 crore, about 56% lower than the initial estimate of Rs 1.75 trillion. For FY23, it has set a modest target of Rs 65,000 crore.
