(a) whether the Government propose to set up a National Equity Fund from the proceeds and disinvestment of PSUs;
(b) if so, the details thereof alongwith the purpose for which the Fund is likely to be used; and
(c) the time by which its use is likely to start?
MINISTER OF DISINVESTMENT AND MINISTER OF DEVELOPMENT OF NORTH EASTERN REGION (SHRI ARUN SHOURIE)
(a), (b) & (c) A statement is laid on the Table of the House.
Statement referred to in reply to parts (a), (b) and (c) of the Lok Sabha Starred Question No.399 for 18-12-2001 regarding National Equity Fund by Shri Suresh Ramrao Jadhav.
(a) The proposal to set up a Fund with the proceeds from disinvestment has been raised from time to time. Disinvestment Commission also recommended setting up of a Disinvestment Fund. This issue has also been examined and the current thinking of the Government is not in favour of setting up such an exclusive Fund.
(b) & (c) The disinvestment proceeds are deposited in the Consolidated Fund of India (CFI) like any other receipt of the Government of India. The expenditure out of the CFI include outlays for restructuring of public sector enterprises, social sectors like education, health and family welfare etc. As mentioned by the Finance Minister in his budget speech for the year 2001-2002, out of the estimated receipt of Rs.12,000 crore from disinvestment during 2001-2002, an amount of Rs.7,000 crore will be used for providing restructuring assistance to PSUs, safety net to workers and reduction of debt burden. Contingent upon realisation of the anticipated receipt of Rs.12,000 crore, a sum of Rs.5,000 crore will be used to provide additional budgetary support for the Plan primarily in the social and infrastructure sectors.
It may be noted that total annual expenditure in these areas (social & infrastructure sectors, restructuring of PSUs etc.) every year has been much more than the receipts from disinvestment in those years.
Lok Sabha Starred Question No.399 for 18-12-2001 regarding National Equity Fund by Shri Suresh Ramrao Jadhav (Position No.19)
Note for Supplementaries
Since 1991-92, Government has been disinvesting regularly with prior planning in the beginning of the year starting with the projected disinvestment in the Annual Budget. The annual targets set in this regard and the receipts from disinvestment in PSUs since 1991-92 are indicated below:-
(Rupees in Crore)
Year Target Receipts from disinvestment
1991-92 2500 3,038 1992-93 2500 1,913 1993-94 3500 NIL 1994-95 4000 4,843 1995-96 7000 168 1996-97 5000 380 1997-98 4,800 910 1998-99 5,000 5,371 1999-2000 10,000 1,829 2000-01 10,000 1,869 2001-02
(upto 14-12-2001) 12,000 212
TOTAL 66,300 20,533
(Rs. in crore)
Year Disinvestment receipts BUDGETARY SUPPORT TO PSUs Non-Plan Grants from Plan Budget Total Loans/ National support to CPSUs+ BudgetGrants+ Renewal Equity Loans Support Fund
1992-93 1,913 600 689 2238 2403 5930 1993-94 NIL 780 542 2419 4072 7813 1994-95 4,843 911 252 3442 3613 8218 1995-96 168 1184 210 2050 3218 6662 1996-97 380 1459 201 2439 2956 7055 1997-98 910 1583 327 3004 2550 7464 1998-99 5,371 1854 393 3215 2161 7623 1999-00 1.829 1842 - 4377 2186 8405 2000-01 1,869 2081 - 4742 2460 9283 2001-02 (BE) 212+ 1374 - 5413 1459 8246
TOTAL 17,495 13,668 2,614 33,339 27,078 76,699
+ Receipts from disinvestment upto 14-12-2001.