InvestorQ : How much did the divestment of two power units to NTPC contribute to the disinvestment revenues for the current fiscal year? Has it sold ITC and UTI Bank?
Archita Jajjoo made post

How much did the divestment of two power units to NTPC contribute to the disinvestment revenues for the current fiscal year? Has it sold ITC and UTI Bank?

Answer
user profile image
Rashi Mehra answered.
6 months ago


Actually, the two power plants sold to NTPC yielded Rs.9000 crore for the government while the last minute sale of the Kamarajar Port to the Chennai Port Trust yielded Rs.2500 crore for the government taking their last minute accretion to divestment to Rs.11,500 crore. However, despite the last minute boost, the divestment revenues for the fiscal year were short of the target by nearly 20%. The Jul-19 budget had set the divestment target at Rs.105,000 crore which was scaled down to Rs.65,000 crore in the Feb-20 Budget. But the government finds itself 20% short of even this downsized target for the year. Apart from the Rs.11,500 crore sale last week, even the balance were not exactly OFS divestments. For example, nearly 50% of the balance came from CPSE ETF issues and sale of enemy property. Due to paucity of time, the IRFC issue and the SUUTI sales have been put off to next fiscal year. The SUUTI positions in Axis Bank and ITC is expected to generate nearly Rs.8000 crore for the government.