The government will restructure the National Investment Fund (NIF), where money received from disinvestment is parked, according to sources.
From the next financial year, the government will utilise the disinvestment proceeds for recapitalisation of banks and for subscribing to the shares of Central Public Sector Enterprises and preferential allotments.
According to the CCEA's decision, unlisted firms with three-year track record of net profit and positive networth will have to come out with Initial Public Offerings.
The government has also decided that all unlisted CPSEs which have made profit in the past 3 years and have a positive networth should get listed on stock exchanges.
Ruling out any plans to restructure the National Investment Fund (NIF), the government on Friday said the proceeds from divestment of the NHPC and Oil India Limited (OIL) will be credited to the NIF.
Overcoming resistance from the Left Parties, government on Thursday virtually re-initiated the divestment process by targeting Rs 1500 crore (Rs 15 billion) funds for the National Investment Fund.
While demanding an increase in income tax exemption limit, the trade unions suggested that the rates of personal and corporate income tax for those in high income brackets should also be enhanced.
Finance Minister P Chidambaram on Tuesday said the government was unlikely to divest its stake in any of the profitable public sector units in near future.
Over Rs 1,500 crore (Rs 15 billion) that the government will get from offloading its residual stake in Maruti Udyog Ltd
The April 2 Supreme Court order quashing the February 12, 2018 RBI circular (which ended all debt recast plans even on a one-day default) put paid to the resolution plan as banks were left with no leeway to restructure the loan and pay the promised Rs 1,500 crore interim funds.
The guidelines for strategic disinvestment were issued on Monday itself when Finance Minister Arun Jaitley presented the Union Budget for 2016-17.
Data used for the graph and cited elsewhere in the column were obtained from various publications of the RBI.
Finance minister Arun Jaitley has delivered a Arun Jaitley delivered a bold, far sighted budget
One crucial revenue source that can help the government achieve its fiscal-deficit target is the proceeds from the sale of its stakes in public sector companies.
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