Shifting targets

Govt should not go slow on disinvestment

There has been a persistent reluctance to pursue the disinvestment programme from the beginning. Disinvestment of central public-sector enterprises (CPSEs) was part of the overall opening up and liberalisation process. A well-run disinvestment programme would have allowed the government to get out of CPSEs, unlock value, reduce fiscal costs, and provide resources to increase public investment in other priority areas. Privatisation of CPSEs or significantly increased public shareholding would have also helped improve their performance. However, the programme has mainly been used over the years to contain the fiscal deficit with minority stake sales. There have also been instances of