The structure of asset sale

A vital question for the government, however, is whether it wants to pursue both equity disinvestment in PSUs and asset sale, simultaneously, and whether one company can figure in both programmes

One of the explicit message from this year’s Budget has been that the government would depend on private sector investment in more ways than one to support its growth agenda. Apart from expecting private investment in infrastructure and manufacturing, the government, for its own revenue, expects institutions and retail investors to pitch in with as much as Rs 1.05 trillion by buying stake in public sector undertakings (PSUs). These will be outright sale of equity either in the stock market or through strategic sale.

This is just one side of the disinvestment programme, the other being letting go some of the