Last week the government said that it intended to sell 5% of its holding in IRCTC (Indian Railway Catering and Tourism Corporation) and raise ₹2,700 in the process. They were hoping to inch closer to the divestment target for FY23 — set at ₹65,000 crores. And since the government has already met 95% of its target — ₹28,000 crores from selling shares in public sector enterprises and ₹34,000 crores from dividends, they’ll probably get there sooner than later. (View Highlight)
In 1991 India faced a massive financial crisis. The Gulf War in 1990 and the resulting oil shock depleted our resources entirely. We barely had money to pay for our imports. And this is when the government considered the idea of selling bits and pieces of public enterprises to improve the state’s financial health.
The objectives were twofold. One — to promote close collaboration with private sector enterprises. And two — raise money. (View Highlight)
