<p>Addressing the Indian Chamber of Commerce (ICC), Ministry of Disinvestment Secretary Sunil Mitra said finance crunch has forced the government to use sale proceeds of PSU shares during 2009-12 for carrying out capital expenditure programmes in the PSUs.<br /><br />Earlier, the interest amount accrued from the corpus of National Investment Fund, raised from the proceeds of divestment, was used for investment in the social sector as also for capital expenditure. <br /><br />About 75 per cent of interest amount was used for social sector expenditure like mid-day meal, and the rest for capital expenditure like restructuring sick PSUs. “Now the fund would be used directly for capital expenditure for three years,” he added. <br />Stating that Sebi has given permission to sell 65 per cent of shares of PSUs, which were to be divested, through auctions, he said it might also introduce a cap for respective institutions for buying maximum number of shares.<br /><br />Between 1991 and 2009, the Centre, he said, had raised a total of Rs 58,000 crore from disinvestment of shares of PSUs, of which Rs 37,000 crore had been raised through minority sales and rest from strategic sales, including bundle sales.<br /></p>
<p>Addressing the Indian Chamber of Commerce (ICC), Ministry of Disinvestment Secretary Sunil Mitra said finance crunch has forced the government to use sale proceeds of PSU shares during 2009-12 for carrying out capital expenditure programmes in the PSUs.<br /><br />Earlier, the interest amount accrued from the corpus of National Investment Fund, raised from the proceeds of divestment, was used for investment in the social sector as also for capital expenditure. <br /><br />About 75 per cent of interest amount was used for social sector expenditure like mid-day meal, and the rest for capital expenditure like restructuring sick PSUs. “Now the fund would be used directly for capital expenditure for three years,” he added. <br />Stating that Sebi has given permission to sell 65 per cent of shares of PSUs, which were to be divested, through auctions, he said it might also introduce a cap for respective institutions for buying maximum number of shares.<br /><br />Between 1991 and 2009, the Centre, he said, had raised a total of Rs 58,000 crore from disinvestment of shares of PSUs, of which Rs 37,000 crore had been raised through minority sales and rest from strategic sales, including bundle sales.<br /></p>
