Syllabus: GS- III
Subject: Economy
Topic: Industry and Industrial policies
Issue: Disinvestment
- Disinvestment refers to the government’s policy of selling its assets in public sector enterprises, either partially or fully.
- Strategic disinvestment is the specific type of disinvestment where a majority stake (50% or more) in a company is sold.
- This leads to transfer of control and management to the buyer.
Government’s policy:
- In India, the Department of Investment and Public Asset Management (DIPAM) under the Finance Ministry is concerned with disinvestments.
- Policy of Govt. of India:
- In strategic sectors (Atomic Energy, Space PSUs) – “bare minimum presence” of the government.
- In non-strategic sectors – complete exit of govt. share.
- Disinvestment targets
| Financial year and target set (in lakh crore) | Target Achieved |
| 2020-21 : 2.10 | Only 16% of the target. |
| 2021-22 : 1.75 | Only 8% of the target |
| 2022-23 : 0.65 | 48% of the target |
| 2023-24 : 0.51(lowest target set in 7 years) | – |
