Government expects to raise Rs. 40000 crore from Disinvestments in 2010-11

The Government announced that with effect from April 2009, all proceeds from disinvestment would be channelised into the National Investment Fund (NIF) and would be available in full as one time exemption for meeting capital expenditure of identified social sector programmes as decided by the Planning Commission/Department of Expenditure.

The Government has announced its intentions of initially focussing on divesting small portions of its holding in listed PSUs where public shareholding is less than 10%, by way of Follow-on Public Offers. In addition to the follow-on offers, the Government also plans to list profitable PSUs having a net-worth of more than Rs. 200 crore.

In the Budget, Finance Minister Mr. Pranab Mukerjee has provided for Rs. 1120 crore from disinvestment in 2009-10

The Economic Survey, tabled in the Parliament by Finance Minister Mr. Pranab Mukherjee has stressed on the need to revitalize the disinvestment programme and plans to generate at least Rs. 25,000 crore per year