Economy

Will not use disinvestment funds for social schemes after March: Pranab

PTI New Delhi | Updated on March 12, 2018 Published on August 19, 2011

The Finance Minister, Mr Pranab Mukherjee, today said he would not seek proceeds from disinvestment to meet capital expenditure needs beyond March 2012, despite facing difficulties due to the global economic situation.

“I would not like to seek a further extension even though I am in a difficult situation,” Mr Mukherjee said replying to supplementaries during Question Hour.

In November 2009, the Government had granted one-time exemption to utilise the proceeds from disinvestment of Central Public Sector Enterprises (CPSEs) for meeting capital expenditure requirements of select social sector programmes.

The proceeds from disinvestment are channelised to a National Investment Fund (NIF), set up in 2005. About 75 per cent of the interest generated from the fund would be used to finance selected social sector schemes, which promote education, health and employment.

The remaining 25 per cent would be used to meet capital investment requirements of profitable and revivable CPSEs.

Mr Mukherjee said no deposits were made to NIF from 2009-10 to 2011-12. During this period nearly Rs 48,000 crore have been realised through disinvestment of CPSEs.

He made it clear that the Government would not let its equity go below 51 per cent in any of the CPSEs.

Published on August 19, 2011
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