25 pc of divestment money likely for sick PSUs

25 pc of divestment money likely for sick PSUs

The government is likely to revert to the policy of using 25 per cent of the disinvestment proceeds for reviving sick PSUs and recapitalising the profitable ones from the next fiscal.

The government, according to sources, is likely to take some decision in the forthcoming Budget in this regard as its three-year policy of using entire funds from disinvestment for social sector programmes ends on March 31, 2012.

An announcement in this regard in likely in the Budget, 2012-13, to be presented by Finance Minister Pranab Mukherjee in the Lok Sabha on March 16.

The earlier stated policy of the government was to utilise 75 per cent of the disinvestment proceeds for social sector programmes and the rest for recapitalisation and revival of sick and profitable units.