New Delhi: The government may have a paltry disinvestment target of Rs1,120 crore, but it has committed to pumping in Rs25,546 crore as equity in public sector entities during the current financial year.
Indian Railways and the National Highways Authority of India (NHAI) alone would account for over 90% of the total equity investment by the Centre. The government would pump in Rs14,600 crore in the Railways to part-finance the plan investment of Rs39,545 crore.
More than half of the investment of Rs13,646 crore for NHAI would also come from the government equity at Rs8,578 crore.
The metro rail projects in Delhi, Bangalore, Kolkata and Chennai would also get close to Rs800 crore for part- financing the estimated investment of around Rs3,750 crore.
Other beneficiaries would include National Minorities Development and Finance Corp, whose entire plan outlay of Rs125 crore for the year would come through this route.
On the other hand, the government is targetting to mop up close to Rs50,000 crore by way of dividend from PSUs, PSEs and other investments as also RBI, national banks and financial institutions.
Last year, the slowdown appears to have impacted the government-owned entities also as dividend from this segment at Rs39,736 crore was about Rs4,000 crore less than what was targetted in the Budget for 2008-09.
The target for PSUs itself has been lowered from Rs24,758 crore last year (Budget) to Rs21,150 crore. The dividend and surplus from RBI and nationalised banks, on the other hand, are pegged higher by over Rs10,000 crore at Rs28,600 crore for the current fiscal.
The PSUs as a block as such are the single largest contributor to the government kitty in terms of both tax and non-tax revenues, besides accounting for most of the government’s plan investments.
Besides equity, the government would give just over Rs3,000 crore as loans which is substantially lower than Rs4,655 crore given last year.
The government gave about Rs19,000 crore as equity to PSUs in 2008-09 and most of it was generally accounted for by the Railways, metro rail and NHAI projects.
But on the other hand, the PSUs have been asked to substantially increase their Plan investments to about Rs2,37,000 crore, compared to Rs2,07,502 crore last year.
To support this, the PSUs would have to generate over Rs2,08,000 crore by way of internal resources, bonds and debentures and other sources. The resource mobilisation last year was just about Rs1,84,000 crore.