Current Affairs-Indian Economic Survey-2012-13: Government to Raise Rs 40,000 Crore through Disinvestment

Government to Raise Rs 40,000 Crore through Disinvestment

The Central Public Sector Enterprises (CPSEs) are an important constituent industry. There were altogether 260 CPSEs under the Administrative control of various Ministries/Departments as on March 31, 2012. Of these, 225 were in operation and 35 under construction. The share of industrial CPSEs in the total investment in CPSEs in terms of gross block, stood at 77.46 per cent during the year. The CPSEs in the mining sector registered the highest increase in net profit (29.45 per cent) in 2011-12. CPSEs in manufacturing sector recorded a decline of 22.65 per cent in net profit in 2011-12 despite 27.73 per cent increase in their turnover. The electricity sector recorded growth of 16 per cent turnover and 13.42 per cent in profit. 

The Government has set a target for raising Rs 40,000 crore by way of disinvestment in various CPSEs during 2011-12 and raised Rs 13,854 crore, which included disinvestment by way of ‘offer for sale’ (OFS) in Oil and Natural Gas Commission (ONGC) amounting to Rs 12,749.50 crore. The disinvestment target in Budget 2012-13 has been set at Rs 30,000 crore.