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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF INVESTMENT AND PUBLIC ASSET MANAGEMENT
LOK SABHA
UNSTARRED QUESTION NO. 2614
TO BE ANSWERED ON MONDAY, MARCH 09,2026/PHALGUNA 18, 1947 (SAKA)
Disinvestment Plan for Public Sector Enterprises
2614. SHRI SANJAY UTTAMRAO DESHMUKH
SHRI ANIL YESHWANT DESAI
Will the Minister of Finance:
(a) The details of the Government’s disinvestment plan for the current financial year:
(b) The reasons for selling Government equity in Public Sector Enterprises and inviting
private entities to participate in these business operations:
(c) The assessment of the Government regarding the success of the undertaking handed
over to private parties during the last ten years:
(d) Whether sufficient funds are available for the said purpose: and
(e) If so, the details there of?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (b): Government carries out disinvestment in Public Sector Enterprises (PSEs) through
(i) Minority Stake Sale through various SEBI-approved methods such as Initial Public Offer
(IPO), Offer for Sale (OFS), Buyback of shares etc and (ii) Strategic Disinvestment i.e. entire
or substantial sale of Government shareholding to a strategic buyer along with transfer of
management control.
While minority stake sale increases public float of CPSEs and enable citizens /investors to
benefit from the value created by these companies through the stock exchanges, strategic
disinvestment/privatization is based on the economic principle that Government should
discontinue in sectors, where competitive markets have come of age and economic potential of
such entities may be better discovered in the hands of strategic investor due to various factors
such as infusion of capital, technological upgradation and efficient management practices.
Disinvestment is an ongoing process, and execution/completion of specific transactions hinges
upon market conditions, domestic and global economic outlook, geopolitical factors, investor
interest and administrative feasibility. Given the market-sensitive nature of disinvestment
transactions, drawing up timelines for disinvestment are not feasible.(c) to (e): The following CPSEs have been privatized in the last ten years through transparent,
open and competitive bidding process:
S. Financial Name of Acquirer
Name of the CPSE /Entity
No Year
2021-22 Air India and its subsidiary AIXL and M/s Talace Pvt. Ltd.
1
AISATS(JV)
2022-23 TATA Steel Long
2 Neelachal Ispat Nigam Limited (NINL) Products Ltd.
2024-25 M/s. Konoike
Ferro Scrap Nigam Limited (FSNL), a
3 Transport Co. Ltd
subsidiary of MSTC Ltd.
The Department has not made any formal assessment of operational, technological and
managerial efficacies of these privatized CPSEs. However, the Economic Survey, 2019-20
analyzed the gains of privatization in case of 11 CPSEs that had undergone strategic
disinvestment from 1999-2000 to 2003-04. The analysis shows that these privatized CPSEs on
an average, perform better post privatization than their peers in terms of their net worth, net
profit, return on assets, return on equity, gross revenue, net profit margin, sales growth and
gross profit per employee.
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