New Delhi, July 12 (IANS) Faced with the daunting task of reaching the Rs 1.05 lakh crore disinvestment target, the government would announce more exchange-traded funds (ETFs) this year and also club such funds with equity-linked savings schemes, Atanu Chakraborty, Secretary, Department of Investment and Public Asset Management, said on Friday.
"The divestment Of 14 companies is in different stages. We will see more ETF offerings over a period of time. ETF will get clubbed with equity-linked savings schemes", he said at an event on CII.
Chakraborty said the Budget announcement of proposed hike to 35 per cent of public float will ensure higher public investment.
"Larger public float will lead to more public investment by foreign investors," he said.
The 2019-20 Budget has proposed tax exemptions to exchange-traded funds (ETFs) for central public sector enterprises (CPSEs). These ETFs will get the status of equity-linked savings schemes (ELSS).
Additionally, the Budget has proposed extending the concessional tax rate of short-term capital gains to equity-oriented fund of funds (FoF) that are set up for disinvestments.
Finance Minister Nirmala Sitharaman has proposed to extend the benefit of section 80C for investments made in Central Public Sector Enterprise (CPSE) exchange-traded fund (ETF). The tax saving will be similar to the tax benefit available in the equity-linked savings scheme (ELSS).
The Finance Minister, in her maiden Budget, increased the divestment target from Rs 90,000 crore to Rs 1.05 lakh crore for the current fiscal year, focusing on consolidation of public sector undertakings and strategic disinvestment.
The government has also lined up IPOs for 10 PSUs and two are already done. So far the government has garnered Rs 2,300 crore.
About Gopi
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz