Winning Bizness Desk

Mumbai. The Narendra Modi-led government has taken a big decision regarding selling the shares or ownerships of the companies. The government will no longer focus on selling more government companies in the country. This is what DIPAM (Department of Investment and Public Asset Management) has underlined. The secretary of this department has said that now the government's goal is not to sell government companies i.e. disinvestment. Rather the government has made a new plan. DIPAM Secretary Tuhin Kant Pandey says that the government will no longer focus on disinvestment i.e. selling government companies completely or stake in them just to achieve its target. Instead, its focus will be on improving the performance of government companies (PSUs).

77 govt companies listed in stock market

Pandey said that 77 government companies are listed in the stock market and Their market capitalization has increased four times in the last three years to about Rs 73 lakh crore. These include prominent government banks (like SBI) and insurance companies (like LIC) and others. Anyway, in the last few years, government companies in the banking, finance, energy and railway sectors have given tremendous performance. He said that DIPAM will now follow a well-planned disinvestment strategy. Why should the government not trust its shares? Now we cannot say that this is the target of the government to sell the shares in any situation. This approach has not helped.

share price has given good returns to investors

Not only this, the growth of their share price has given good returns to investors. LIC has an important role in increasing the total market cap of government companies. The market capitalization of LIC has reached Rs 7.2 lakh crore. According to a report, Tuhin Kant Pandey says that the performance of public sector companies has improved and the market has also started evaluating them better. Not only this, the capital expenditure and management of the companies has improved due to the market keeping an eye on these companies, besides the perception of investors has also changed.

No disinvestment target in the budget

Pandey said that the government has changed its policy regarding disinvestment and the government has now stopped giving any clear target of the amount to be raised from disinvestment in the budget. There is now a provision for raising capital in the budget. This includes both disinvestment as well as asset monetization. In the current financial year, the government has kept a budget of Rs 50,000 crore for this, which was Rs 30,000 crore in the last financial year.