Congress party on Wednesday gave adjournment motion notice in Lok Sabha over 'indiscriminate disinvestment of Public Sector Undertakings (PSUs)'. 
 
The adjournment motion is an extraordinary procedure which, if admitted, leads to setting aside the normal business of the House for discussing a definite matter of urgent public importance. 
 
Last week on Wednesday, the Cabinet Committee on Economic Affairs (CCEA) accorded 'in-principle' approval for strategic disinvestment in five central public-sector enterprises including the Bharat Petroleum Corporation Ltd (BPCL). 
 
Apart from BPCL, the Union Cabinet has also approved the sale of its stake in four other public sector enterprises,&nbsp;Shipping Corporation of India and the Container Corporation of India, Tehri Hydro Development Corporation India Limited and the North Eastern Electric Power Corporation

Congress party on Wednesday gave adjournment motion notice in Lok Sabha over 'indiscriminate disinvestment of Public Sector Undertakings (PSUs)'. The adjournment motion is an extraordinary procedure which, if admitted, leads to setting aside the normal business of the House for discussing a definite matter of urgent public importance.

Congress party on Wednesday gave adjournment motion notice in Lok Sabha over 'indiscriminate disinvestment of Public Sector Undertakings (PSUs)'. The adjournment motion is an extraordinary procedure which, if admitted, leads to setting aside the normal business of the House for discussing a definite matter of urgent public importance. Last week on Wednesday, the Cabinet Committee on Economic Affairs (CCEA) accorded 'in-principle' approval for strategic disinvestment in five central public-sector enterprises including the Bharat Petroleum Corporation Ltd (BPCL). Apart from BPCL, the Union Cabinet has also approved the sale of its stake in four other public sector enterprises, Shipping Corporation of India and the Container Corporation of India, Tehri Hydro Development Corporation India Limited and the North Eastern Electric Power Corporation

Congress gives adjournment motion notice in Lok Sabha for PSUs disinvestment

The speed with which government's disinvestment programme kicks off as well as interest shown by potential buyers in public sector units being offered for strategic sale will be crucial to prevent a slippage in non-loan capital receipts, according to investment information and rating agency ICRA.

Finance Minister Nirmala Sitharaman on Friday increased the disinvestment target to Rs 1.05 lakh crore for financial year 2019-20, over 16 per cent from the interim <a href="https://www.wionews.com/india-news/union-budget-2019-rightly-gives-top-priority-to-infrastructure-arun-jaitley-233533">Budget target</a>.

She said strategic disinvestment of select central public sector enterprises like Air India will continue to remain a priority for the government.

The revised <a href="https://www.wionews.com/india-news/union-budget-2019-sets-a-clear-action-plan-for-making-india-5-trillion-economy-ficci-cii-233534">Budget</a> estimates for FY 20 indicate a rise in fiscal deficit at an absolute level to Rs 7 lakh crore from Rs 6.6 lakh crore in FY 2019.

However, the government has forecast a mild dip in fiscal deficit target to 3.3 per cent of GDP in FY 20 from 3.4 per cent of GDP in FY 19.

ICRA said the revenue receipts are estimated to grow by 25.6 per cent with a considerable 25.3 per cent rise in net tax revenues and a significant 27.2 per cent expansion in non-tax revenues.

The revised Budget estimate for FY 20 has projected an increase of 27.2 per cent in non-tax revenues to Rs 3.1 lakh crore from Rs 2.5 lakh crore in FY 19.

Revenues from communication services are estimated to increase to Rs 50,519 crore in FY 20 from Rs 39,245 crore in the previous fiscal.

Assuming no spectrum auctions, ICRA's estimate for non-tax revenue from telecom receipts in FY 20 is Rs 39,000 crore to 41,000 crore, based on the deferred payments pertaining to earlier auctions and normal fees such as spectrum usage charges and licence fees.

The receipts from dividends and surplus from Reserve Bank of India (RBI), nationalised banks, financial institutions and public sector enterprises are estimated to increase by 37.1 per cent led primarily by higher surplus transfer expected from the RBI, nationalised banks and financial institutions to Rs 1.1 lakh crore in FY 20.

Awaited recommendations of the Jalan Committee, which was appointed to review the economic capital framework for the central bank with respect to the transfer of the RBI's surplus to the government, may crucially influence the government's collections from this source in the ongoing fiscal.

Dividends and profits from other public sector enterprises are estimated to rise by 27.4 per cent to Rs 57,000 crore from Rs 45,000 crore in FY 19.

Moreover, the revised Budget estimate for non-loan capital receipts at Rs 1.2 lakh crore is 16.5 per cent higher than the Rs 1 lakh crore included in provisional estimates for FY 19.

The former includes Rs 1.05 lakh crore as receipts from disinvestment of the government's stake in public sector units, 23.5 per cent higher than the Rs 85,050 crore included in FY 19.

"The speed with which the disinvestment programme kicks off, as well as the interest shown by potential buyers in public sector units being offered for strategic disinvestment such as Air India, will be crucial to prevent a slippage relative to this target," said ICRA.

Overall, the realisation of direct taxes and Goods and Services Tax collections, dividends and surplus from the RBI, nationalised banks and financial institutions and public sector enterprises, the revenues raised from telecom sector and disinvestment proceeds will also be crucial to prevent a revenue slippage in FY 20, it said.&nbsp;

 
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The speed with which government's disinvestment programme kicks off as well as interest shown by potential buyers in public sector units being offered for strategic sale will be crucial to prevent a slippage in non-loan capital receipts, according to investment information and rating agency ICRA.

The speed with which government's disinvestment programme kicks off as well as interest shown by potential buyers in public sector units being offered for strategic sale will be crucial to prevent a slippage in non-loan capital receipts, according to investment information and rating agency ICRA. Finance Minister Nirmala Sitharaman on Friday increased the disinvestment target to Rs 1.05 lakh crore for financial year 2019-20, over 16 per cent from the interim Budget target. She said strategic disinvestment of select central public sector enterprises like Air India will continue to remain a priority for the government. The revised Budget estimates for FY 20 indicate a rise in fiscal deficit at an absolute level to Rs 7 lakh crore from Rs 6.6 lakh crore in FY 2019. However, the government has forecast a mild dip in fiscal deficit target to 3.3 per cent of GDP in FY 20 from 3.4 per cent of GDP in FY 19. ICRA said the revenue receipts are estimated to grow by 25.6 per cent with a considerable 25.3 per cent rise in net tax revenues and a significant 27.2 per cent expansion in non-tax revenues. The revised Budget estimate for FY 20 has projected an increase of 27.2 per cent in non-tax revenues to Rs 3.1 lakh crore from Rs 2.5 lakh crore in FY 19. Revenues from communication services are estimated to increase to Rs 50,519 crore in FY 20 from Rs 39,245 crore in the previous fiscal. Assuming no spectrum auctions, ICRA's estimate for non-tax revenue from telecom receipts in FY 20 is Rs 39,000 crore to 41,000 crore, based on the deferred payments pertaining to earlier auctions and normal fees such as spectrum usage charges and licence fees. The receipts from dividends and surplus from Reserve Bank of India (RBI), nationalised banks, financial institutions and public sector enterprises are estimated to increase by 37.1 per cent led primarily by higher surplus transfer expected from the RBI, nationalised banks and financial institutions to Rs 1.1 lakh crore in FY 20. Awaited recommendations of the Jalan Committee, which was appointed to review the economic capital framework for the central bank with respect to the transfer of the RBI's surplus to the government, may crucially influence the government's collections from this source in the ongoing fiscal. Dividends and profits from other public sector enterprises are estimated to rise by 27.4 per cent to Rs 57,000 crore from Rs 45,000 crore in FY 19. Moreover, the revised Budget estimate for non-loan capital receipts at Rs 1.2 lakh crore is 16.5 per cent higher than the Rs 1 lakh crore included in provisional estimates for FY 19. The former includes Rs 1.05 lakh crore as receipts from disinvestment of the government's stake in public sector units, 23.5 per cent higher than the Rs 85,050 crore included in FY 19. "The speed with which the disinvestment programme kicks off, as well as the interest shown by potential buyers in public sector units being offered for strategic disinvestment such as Air India, will be crucial to prevent a slippage relative to this target," said ICRA. Overall, the realisation of direct taxes and Goods and Services Tax collections, dividends and surplus from the RBI, nationalised banks and financial institutions and public sector enterprises, the revenues raised from telecom sector and disinvestment proceeds will also be crucial to prevent a revenue slippage in FY 20, it said.

Disinvestment plan key to avert revenue slippages in FY 20: ICRA

A day after his statement gave an impression that the <a href="https://www.wionews.com/business-economy/centre-to-go-ahead-with-disinvestment-process-of-air-india-ministry-of-civil-aviation-230982">government's plan to privatise Air India</a> was put on hold, Minister of State for Civil Aviation Hardeep Singh Puri on Friday asserted that the Centre was committed to disinvestment of the national carrier.

Seeking to clear the air arising out of his statement in Parliament yesterday, he said on Friday, "There is no confusion. We are committed to disinvestment. There was a long answer to a Parliament question. Somebody read the first half without reading the second half. There is no confusion".

In a written reply to Congress MP Anto Antony's question in the Lok Sabha, Puri on Thursday said that the "present environment" is not conducive to stimulating interest among investors in the disinvestment plan.

"In view of volatile crude prices and adverse fluctuations in exchange rates, the present environment is not conducive to stimulate interest amongst investors for strategic disinvestment of Air India in immediate near future. The issue would be revisited once global economic indicators including oil prices and forex conditions stabilize," he had said.

The government stepped in quickly to clarify matters. An official press release said, "However, continued support from the government had resulted in improvement of financial and operational performance of Air India. As per the recommendations of AISAM, the govt will now go ahead with the process of disinvestment of the company."

In a meeting on 28th June 2017, the Cabinet Committee on Economic Affairs had in-principle approved the consideration for strategic disinvestment of Air India and its five subsidiaries. An Air India Specific Alternative Mechanism (AISAM) was constituted by CCEA to guide the process on of strategic disinvestment.

The AISAM at a meeting in March last year had decided that due to issues like volatile crude oil prices and adverse fluctuations in exchange rates, the atmosphere was not conducive for the disinvestment.

"But this was last year," the government said in the press releases.

The government failed in its attempt to sell a 76 per cent stake in loss-making Air India due to a lack of interest from bidders last year, a report said.

Air India suffered Rs 7,635 crore (provisional) loss in the financial year 2018-19.

It was Rs 5348 crore in 2017-18, while the carrier had to suffer Rs 6452 crore, the highest ever, in the financial year 2016-17.

The government infused Rs 3,975 crore in Air India in the financial year ended March, the government said in Parliament.

A day after his statement gave an impression that the government's plan to privatise Air India was put on hold, Minister of State for Civil Aviation Hardeep Singh Puri on Friday asserted that the Centre was committed to disinvestment of the national carrier.

A day after his statement gave an impression that the government's plan to privatise Air India was put on hold, Minister of State for Civil Aviation Hardeep Singh Puri on Friday asserted that the Centre was committed to disinvestment of the national carrier. Seeking to clear the air arising out of his statement in Parliament yesterday, he said on Friday, "There is no confusion. We are committed to disinvestment. There was a long answer to a Parliament question. Somebody read the first half without reading the second half. There is no confusion". In a written reply to Congress MP Anto Antony's question in the Lok Sabha, Puri on Thursday said that the "present environment" is not conducive to stimulating interest among investors in the disinvestment plan. "In view of volatile crude prices and adverse fluctuations in exchange rates, the present environment is not conducive to stimulate interest amongst investors for strategic disinvestment of Air India in immediate near future. The issue would be revisited once global economic indicators including oil prices and forex conditions stabilize," he had said. The government stepped in quickly to clarify matters. An official press release said, "However, continued support from the government had resulted in improvement of financial and operational performance of Air India. As per the recommendations of AISAM, the govt will now go ahead with the process of disinvestment of the company." In a meeting on 28th June 2017, the Cabinet Committee on Economic Affairs had in-principle approved the consideration for strategic disinvestment of Air India and its five subsidiaries. An Air India Specific Alternative Mechanism (AISAM) was constituted by CCEA to guide the process on of strategic disinvestment. The AISAM at a meeting in March last year had decided that due to issues like volatile crude oil prices and adverse fluctuations in exchange rates, the atmosphere was not conducive for the disinvestment. "But this was last year," the government said in the press releases. The government failed in its attempt to sell a 76 per cent stake in loss-making Air India due to a lack of interest from bidders last year, a report said. Air India suffered Rs 7,635 crore (provisional) loss in the financial year 2018-19. It was Rs 5348 crore in 2017-18, while the carrier had to suffer Rs 6452 crore, the highest ever, in the financial year 2016-17. The government infused Rs 3,975 crore in Air India in the financial year ended March, the government said in Parliament.

Government is committed to disinvestment in Air India: Minister of State for Civil Aviation

India is open to listing ailing state carrier Air India, a government source said&nbsp;on Wednesday, after failing to attract buyers for a 76 percent stake in the company.

While the government is considering several proposals related to reviving the divestment process, it will not allow complete foreign ownership of the airline, the source said, declining to be named before a final decision is reached.

One of the proposals could involve the government retaining a share in the debt-laden carrier and selling it at a later date so it can capitalise on any financial upside that may occur from listing the airline, the source said.&nbsp;

The government may also consider reducing the debt it passes on to potential buyers and restructuring the large workforce, another senior government official told Reuters.

"We will take a decision in next few days on changing conditions before inviting fresh bids," the official said, adding that the government is committed to selling its stake in the national carrier in the current financial year but could defer it if it fails to get the right price.

The government in March finalised plans to divest a majority stake in Air India and offload about $5.1 billion of its debt, but prospective buyers stayed away, with some citing onerous terms as a reason for their lack of interest.

The lack of buyers in a booming aviation market underlines the challenges the government faces in fixing the debt-laden national carrier, and is a setback for Prime Minister Narendra Modi`s credentials as a reformer willing to step away from running money-losing businesses.

Air India, known for its Maharaja mascot, has some of India`s most lucrative international and domestic landing and parking slots that are key for airlines.

While a buyer would have got management control and gained access to more than 2,500 international slots and over 3,700 domestic slots, it would also have been required to take on Air India`s 27,000 employees, 40 percent of whom are permanent staff.&nbsp;

The terms had also stipulated that the government would have continued to hold a 24 percent stake, with the need for the bidder to abide by conditions, not yet detailed, designed to safeguard employee interests.

The government will soon arrange a bank loan for Air India, the second official said, to meet working capital needs and buy time for a few months before inviting fresh bids.

"The heavens would not fall if the stake sale is deferred to the next fiscal year," the official said adding that ahead of national elections next year, the government could not take the risk of selling the national carrier at a low price.&nbsp;

This could cost the government politically and hurt the process of further privatisation of other state companies, he said.

Government will not allow complete foreign ownership of the airline

India is open to listing ailing state carrier Air India, a government source said on Wednesday, after failing to attract buyers for a 76 percent stake in the company. While the government is considering several proposals related to reviving the divestment process, it will not allow complete foreign ownership of the airline, the source said, declining to be named before a final decision is reached. One of the proposals could involve the government retaining a share in the debt-laden carrier and selling it at a later date so it can capitalise on any financial upside that may occur from listing the airline, the source said. The government may also consider reducing the debt it passes on to potential buyers and restructuring the large workforce, another senior government official told Reuters. "We will take a decision in next few days on changing conditions before inviting fresh bids," the official said, adding that the government is committed to selling its stake in the national carrier in the current financial year but could defer it if it fails to get the right price. The government in March finalised plans to divest a majority stake in Air India and offload about $5.1 billion of its debt, but prospective buyers stayed away, with some citing onerous terms as a reason for their lack of interest. The lack of buyers in a booming aviation market underlines the challenges the government faces in fixing the debt-laden national carrier, and is a setback for Prime Minister Narendra Modi`s credentials as a reformer willing to step away from running money-losing businesses. Air India, known for its Maharaja mascot, has some of India`s most lucrative international and domestic landing and parking slots that are key for airlines. While a buyer would have got management control and gained access to more than 2,500 international slots and over 3,700 domestic slots, it would also have been required to take on Air India`s 27,000 employees, 40 percent of whom are permanent staff. The terms had also stipulated that the government would have continued to hold a 24 percent stake, with the need for the bidder to abide by conditions, not yet detailed, designed to safeguard employee interests. The government will soon arrange a bank loan for Air India, the second official said, to meet working capital needs and buy time for a few months before inviting fresh bids. "The heavens would not fall if the stake sale is deferred to the next fiscal year," the official said adding that ahead of national elections next year, the government could not take the risk of selling the national carrier at a low price. This could cost the government politically and hurt the process of further privatisation of other state companies, he said.

India open to listing Air India after failed divestment: Government source

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