A PROPOSAL TO GOVERNMENT OF INDIA Union Finance Minister Arun Jaitley is going to place a major disinvestment plan before the Cabinet. The plan has a list of energy enterprises along with other PSUs. ONGC, SAIL, Coal India Ltd alone can mop up a whopping Rs 35,000 crore. The total value of disinvestment will be approximately Rs 50,000 crore Modi government had taken a decision to give emphasis to small investors unlike UPA governments disinvestment. The Hindu recently published a report on black money, the report had hidden by both governments, in that says 75% of the GDP of the country is black money. If we calculate that amount in account, India will be second largest economy in the world. The disinvestment of PSU companies is a good opportunity to bring unaccounted money to the main steam economy. Since government had decided to encourage small investors, if government decide to take up Rs five lakhs as cash without any question, a large number unaccounted money will be used to apply these public offers. When government make Rs 50,000 crore worth of IPO, it will attract several billion unaccounted money. Those IPO will over subscribe many fold. If the total Rs 35,000 crore issue over subscribe 11 times the black money coming to the main stream economy will be Rs 500,000 crore! Such huge money will attract tax from next financial year on wards. The refund will be credited in the applicants bank account, that money again pour to capital market, it will help to increase small investors number many fold and strengthen capital market.
Posted on: Fri, 22 Aug 2014 06:56:28 +0000
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