PMO surveys ETF method for offer deal; gauges enormous key disinvestment
NEW DELHI: The Modi government may quit propelling new ETFs or trade exchanged assets for disinvestment of its possessions in open segment endeavors (PSUs).
The Prime Minister’s Office (PMO) has been accepting criticism to not dispatch any crisp ETFs, as they will in general group out the market. Government sources said the PMO may before long accept a call if ETFs in fact are a poorly conceived notion as being proposed by market members.
The legislature is checking out the disinvestment drive in the wake of turning around the proposed personal duty extra charge on FPIs a month ago. With the bears being in full control of the market, the administration’s eager Rs 1.05 lakh crore disinvestment target is starting to resemble a Herculean undertaking.
In her full Union Budget for FY20, Finance Minister Nirmala Sitharaman had raised the divestment focus for the money related year to Rs 1.05 lakh crore from Rs 90,000 crore fixed before.
Government sources disclosed to ETNOW that the PMO is likewise firmly taking a gander at the possibility of key disinvestment, including selling of land packages having a place with Air India and Railways. The PMO is taking a gander at some enormous arrangements, sources said.
In her Budget discourse on July 5, the Finance Minister said that the administration would proceed with vital disinvestment of select focal open part endeavors.
For this, the PMO has asked different divisions, for example, Finance Ministry, Department of Economic Affairs (DEA) and Dipam to investigate conceivable off-advertise exchanges. A guide will be settled by PMO and Finance Ministry soon.
In the mean time, the PMO may likewise rethink the PSU profit arrangement. Money rich PSUs, which are not putting resources into new capex program, could be made to pay more profits, sources said.