Selling less while raising more

Clearer commercial focus and tighter financial discipline may yield a steady steam of dividends

Raising money from sale of public sector undertakings (PSUs) is now a critical item in meeting fiscal targets. This government has raised Rs 2.71 trillion or 84.3 per cent of the targeted Rs 3.21 trillion since 2014-15, meeting its divestment targets in the last two years. The tenacity with which the government is pursuing this one number is admirable. 

During this period, no route to raise money has been off the table; the government has used buybacks (Oil India, National Hydroelectric Power, IRCON etc.), offers for sale (NALCO, National Fertiliser, Neyveli Lignite etc), piggybacking on PSU IPOs (Cochin Shipyard, GIC, New