The government expects the sale of shares in public sector enterprises to net a whopping Rs 41,651 crore (Rs 416.51 billion) in 2007-08, though Finance Minister P Chidamabram did not even mention 'disinvestment' in his Budget speech.
But buried deep in the receipts budget is the sum that will come from sale of shares in public sector companies. At Rs 41,651 crore, this is the highest since the disinvestment process started a few years ago and more than the combined amount since 1998-99 till this financial year.
The proceeds from disinvestment would be a part of capital receipts, which will go to National Investment
Fund. The earnings from the corpus will be used for social sector and revival of public sector.
The government had earlier raised Rs 16,953 crore (Rs 169.53 billion) through this route during 2003-04, when the BJP-led National Democratic Alliance was in the saddle.
However, proceeds from divestment under the government of the Left-backed United Progressive Alliance coalition stood at Rs 4,424 crore (Rs 44.24 billion) and Rs 1,581 crore (Rs 15.81 billion) in 2004-05 and 2005-06 respectively.
Last year's revised estimates say that government raised Rs 529 crore (Rs 5.29 billion) in this fiscal from sale of its holding in PSUs.