First-ever sale of 'enemy shares'; buyback by CPSEs yield over Rs 11,300 cr to exchequer in FY19

Enemy property refers to the assets left behind by people who migrated to Pakistan or China and are no longer citizens of India.

Press Trust of India March 25, 2019 07:35:47 IST
First-ever sale of 'enemy shares'; buyback by CPSEs yield over Rs 11,300 cr to exchequer in FY19
  • The government has garnered Rs 700 crore through the first-ever sale of 'enemy shares'

  • Enemy property refers to the assets left behind by people who migrated to Pakistan or China and are no longer citizens of India.

  • Over Rs 10,600 crore has come in from buyback of government shares by Central Public Sector Enterprises (CPSEs)

New Delhi: Sale of 'enemy shares' and buyback of stocks by Central Public Sector Enterprises (CPSEs) have together yielded the government over Rs 11,300 crore, thus helping the exchequer mop up Rs 85,000 crore from disinvestment in the current fiscal—the second-highest receipt ever.

The government has garnered Rs 700 crore through the first-ever sale of 'enemy shares' after the Cabinet in November 2018 gave its go-ahead to the Department of Investment and Public Asset Management (DIPAM) to sell such shares held in companies.

Enemy property refers to the assets left behind by people who migrated to Pakistan or China and are no longer citizens of India.

Besides, over Rs 10,600 crore has come in from buyback of government shares by Central Public Sector Enterprises (CPSEs).

Firstever sale of enemy shares buyback by CPSEs yield over Rs 11300 cr to exchequer in FY19

Representational image. Reuters.

In 2018-19, the government for the second time in a row exceeded the disinvestment target by mopping up Rs 85,000 crore as against the budget estimate of Rs 80,000 crore.

In 2017-18, the government mopped up a record over Rs 1 trillion, against the target of Rs 72,500 crore.

During the current fiscal, share sale through Exchange Traded Funds (ETFs) has yielded the highest amount of Rs 45,729 crore, followed by Rs 14,500 crore from acquisition of the government's 52.63 percent stake in REC by state-owned Power Finance Corporation (PFC).

In addition, the government has received Rs 1,929 crore via initial public offering (IPO) of five companies — MSTC, RITES, Ircon, Garden Reach Shipbuilders and Midhani.

The government has received Rs 5,218 crore from offer for sale (OFS) of Coal India, and another Rs 5,379 crore from sale of SUUTI stake in Axis Bank.

As regards the buybacks, the government has mopped up over Rs 10,600 crore. The companies which bought back the government stake include ONGC, IOC, Coal India, Oil India and NLC.

For the next fiscal, the government has set a disinvestment target of Rs 90,000 crore.

Updated Date:

also read

4 killed, 5 rescued as ONGC helicopter makes emergency landing in Arabian Sea
India

4 killed, 5 rescued as ONGC helicopter makes emergency landing in Arabian Sea

A brand new Pawan Hans' Sikorsky chopper with 9 people on board crashed into the Arabian Sea on Tuesday, killing four people — including three ONGC employees.

Chopper crash: Oil ministry, ONGC to pay Rs 30 lakh to kin of deceased
India

Chopper crash: Oil ministry, ONGC to pay Rs 30 lakh to kin of deceased

In addition, ONGC has decided to pay Rs 1 lakh to each individual who suffered injuries in the chopper accident

Coal India recruitment 2022: Apply for 1,050 management trainee posts at coalindia.in from 23 June
Education

Coal India recruitment 2022: Apply for 1,050 management trainee posts at coalindia.in from 23 June

Candidates applying should note that the deadline to register for the vacancies is 22 July. Through this recruitment drive, the Coal India Limited will fill a total of 1,050 vacancies in various disciplines.