Major Achivements

S.No. Month Achievements
1 April 2017
  1. As announcement made in the Budget 2017-18 and the extant disinvestment policy, the Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 12.04.2017 has approved listing in RVNL, IRCON International Ltd., IRFC Ltd., IRCTC Ltd., RITES Ltd., BDL, GRPSE Ltd., MDSL, NEEPCO Ltd. MSTC Ltd and MIDHANI on the stock exchanges. Listing of these companies on the stock exchanges will not only facilitate unlocking of their true value but also promote peoples ownership through their participation in public issues of these CPSEs. With a view to expedite the listing process, the process for selection of BRLMs and Legal Advisors has already been initiated by inviting request for proposals (RFPs) during the month.
  2. Post the approval of the Alternative Mechanism for disinvestment of GoIs shares in NTPC, NHPC, PFC, REC, SAIL, NLC, IOCL on 13.04.2017, RFPs have been issued for the selection of Merchant Bankers and Legal Advisors to further undertake the disinvestment transactions.
  3. The window for subscription of offer of shares to employees of Hindustan Copper Ltd. (HCL) was opened from 22.03.2017 to 28.03.2017. The employees were offered the shares at a price of Rs. 58.90 per share, with a 5 per cent discount to the issue/discovered price of the OFS. The GoI received an amount of Rs. 3.73 crore from the employees OFS of HCL.
  4. With a floor price of Rs. 67/- per share, disinvestment of 9.2125 per cent paid-up equity capital of NALCO through OFS method was concluded on 19th & 20th April, 2017. With a view to promote wider participations, 20 per cent shares were reserved for retail investors with a discount of 5 per cent to the cut-off price. With an over subscription of 3.17 per cent, the cut-off price for retail investors eventually settled at Rs. 69.8 per share. The GoI received an amount of Rs. 1191.73 crore as disinvestment proceeds from the transaction. Green-shoe option (option to retain over-subscription) was used for the first time since the introduction of T-1 notice period for OFS by SEBI in February, 2016.
2 March 2017
  1. As against this the revised disinvestment target of Rs. 45,500 crore for 2016-17, the Government realized a total amount of Rs 46,247 crore, comprising Rs.35,468 crore from CPSEs disinvestment and Rs. 10,779 crore from strategic disinvestment and income from management of SUUTIs investment. A total number of 16 transactions were undertaken during 2016-17 vis-a-vis average no. of 4 transactions per year (4.2) for the period between 2009-10 to 2013-14 (5 years). Allocation of shares to CPSEs employees through employees-OFS issues amounted to Rs. 530 crore.
  2. Realization of Rs. 8500 crore through CPSE-ETF during 2016-17 accounts for 24 per cent of CPSEs disinvestment receipts and 18.4 per cent of the total realization (including strategic) during the year. Building on success of Further Fund Offer (FFO-I), the CPSE-ETF FFO-II was launched from 14th March, 2017 with the offer got oversubscribed by approx. 4 times. An amount of Rs. 2499 crore has been received through this offer. An additional amount of Rs. 1000 crore has also been received as income from management of SUUTIs investment on 29.03.2017.
  3. As approved earlier by the Alternative Mechanism (AM), the Government participated in the buyback offers of National Hydroelectric Power Corporation Ltd. (NHPC Ltd.) and Neyveli Lignite Corporation Ltd. (NLC) during the month and realized Rs. 1948.52 crore and Rs. 1429.38 crore respectively through these transactions.
  • Current Year 2017-18 Target and Achievement so far

    Sl.No. Financial Year Target (In Rs. Crore) Achievement (In Rs. Crore)
    1. 2017-18 72,500.00 (including Rs.46,500 crore as disinvestment of CPSEs, Rs.15,000 crore from strategic disinvestment and Rs.11,000 crore

    from listing of Insurance Companies).

    1,195.46 (As on 09.05.2017)

    Last 6 years Targets and Achievements

    Sl.No. Financial Year Target (In Rs. Crore) Achievement (In Rs. Crore)
    1. 2011-12 40,000.00 13,894
    2. 2012-13 30,000.00 23,957
    3. 2013-14 40,000.00 15,819
    4. 2014-15 43,425.00 24,349
    5. 2015-16 41,000.00 (excluding strategic disinvestment of Rs. 28,500 crore) 23,997
    6. 2016-17 56,500 (including Rs. 36,000 crore as disinvestment of CPSEs and Rs. 20,500 crore from strategic disinvestment) 46,246.58 (including Rs. 35,467.87 crore from disinvestment of CPSEs and Rs. 10,778.71 crore from disinvestment of strategic holdings and

    income from management
    of SUUTI investment)


    Budget Announcements and implementation status, 2017-18

    Sl.No. Para No. Text of Announcement Status of Implementation
    1. 103 Listing of Public Sector enterprises will foster greater public accountability and unlock the true value of these companies. The Government will put in place a revised mechanism and procedure to ensure time bound listing of identified CPSEs on stock exchanges. The disinvestment policy announced by me in the last budget will continue. As announced in the Budget, 2017-18, the Government has put in place a mechanism/procedure along with indicative timelines for listing of CPSEs on 17.02.2017. The Administrative Ministries/ Departments have been requested to follow the suggested timelines and to complete time-bound listing of identified CPSEs, as per the extant Acts, Rules and Regulations.
    2. 104 The shares of Railway PSEs like IRCTC, IRFC and IRCON will be listed in stock exchanges. Book Running Lead Manager (BRLMs) and Legal Advisors for listing of the three Railway CPSEs – IRFC, IRCON and IRCTC have been appointed.
    3. 106 Our ETF, comprising shares of ten CPSEs, has received overwhelming response in the recent Further Fund Offering (FFO). We will continue to use ETF as a vehicle for further disinvestment of shares. Accordingly, a new ETF with diversified CPSE stocks and other Government holdings will be launched in 2017-18. The construction of new ETF basket is in the final stage. Advisor for new ETF has been selected. Selection of Legal Advisor is under process.

    Budget Announcements and implementation status, 2016-17

    Sl.No. Para No. Text of Announcement Status of Implementation
    1. 88 A new Policy for management of Government investment in Public Sector Enterprises, including disinvestment and strategic sale has been approved.  We have to leverage the assets of CPSEs for generation of resources for investment in new projects. We will encourage CPSEs to divest individual assets like land, manufacturing units, etc. to release their asset value for making investment in new projects. The NITI Aayog will identify the CPSEs for strategic sale. (i) Detailed instructions/circulars on the procedure and mechanism for strategic disinvestment have been issued on 29th February, 2016 to all Ministries/Departments concerned, including NITI Aayog.

    (ii) Based on the report of the NITI Aayog and the recommendations of CGD, the CCEA in its meeting held on 27th October, 2016, has approved, ‘in- principle’ the proposal for strategic disinvestment of some CPSEs, units of CPSEs and subsidiaries of CPSEs.

    (iii) Administrative Ministries have been requested to initiate the process of strategic disinvestment of the CPSEs for which 'in-principle' approval has been accorded by CCEA.

    (iv) For the purpose of uniformity and efficient implementation of strategic disinvestment transactions, the 'flow of activities' to be completed within a specified time in respect of disinvestment of Government equity as well as disinvestment of equity of parent CPSE subsidiary, and sale of units of CPSEs has been prepared and communicated to the concerned Administrative Ministries/Departments for completion of the activities within the specified timeline.

    (v) The process of strategic disinvestment of the CPSEs has been initiated as per the procedure and mechanism approved by CCEA. IMG for selection of Advisers, Legal Advisers and Asset Valuers have been constituted in DIPAM and the Administrative Departments concerned. In most of the cases Advisors and Legal advisors have been appointed.
    2. 89 We will adopt a comprehensive approach for efficient management of Government investment in CPSEs by addressing issues such as capital restructuring, dividend, bonus shares, etc. The Department of Disinvestment is being re-named as the “Department of Investment and Public Asset Management (DIPAM)”. (i) The Department has been renamed as Department of Investment and Public Asset Management (DIPAM) in line with focus of the Government on management of its investment in Central Public Sector Enterprises (CPSEs) for accelerating economic development as well as augmenting Government resources for higher expenditure.

    (ii) To ensure efficient management of GoI's investment in CPSEs, the Guidelines on "Capital Restructuring of CPSEs" have been issued on 27th May, 2016 which supersedes all previously issued guidelines by various Ministries/Departments.