Govt to come out with alternative disinvestment plan soon: Arun Jaitley1 min read . Updated: 16 Jan 2016, 10:14 AM IST
As against the target of `69,500 crore, the government has in the current fiscal garnered `12,700 crore
New Delhi: The government will come out with an alternative strategy in two to four weeks to push public sector unit (PSU) disinvestment in volatile markets, finance minister Arun Jaitley said on Friday.
“We have to find out an alternative method for this (disinvestment). Wait for two to four weeks, the government will come out with an alternative strategy as to what to do in such volatile markets," he said.
As against the target of ₹ 69,500 crore, the government has in the current fiscal garnered ₹ 12,700 crore. Due to volatile market conditions, the government has been able to sell stakes in only four PSUs—Indian Oil Corp. Ltd, Power Finance Corp. Ltd, Rural Electrification Corp. Ltd and Dredging Corp. of India Ltd.
“This year, for the past few months, we have slowed down the pace because it does not make sense to sell PSU shares at low prices when markets are volatile. We will disinvest only when the government gets the right price," Jaitley told CNBC Awaaz.
On whether divesting PSU stake amounts to selling family silver, Jaitley said it is an “old socialist thinking".
“It is re-adjustment of government money, whether you want government money only in the shares of the company, or you actually want to create a highway, port, airport—the larger public interest. We are reallocating government expenditure."