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‘Indian Oil, EIL stake sale in Jan; BHEL, HAL to follow’

Jan 08 2014, 01:59 IST
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SummaryAs per the road map, a 10 per cent stake sale in IOC and EIL each is expected to yield Rs 5,000 crore and 500 crore, respectively.

The government plans to sell stakes in Indian Oil Corporation and Engineers India Ltd this month and in BHEL in February as it rushes to meet its disinvestment target of Rs 40,000 crore.

The government also proposes to offload equity in Hindustan Aeronautics Ltd (HAL) in March, Economic Affairs Secretary Arvind Mayaram told PTI in an interview.

“This will be very close to Rs 40,000 crore (target). Also in Exchange Traded Fund, we are going to float some of the PSU shares,” he said.

Although the government had budgeted raising Rs 40,000 crore by way of PSU disinvestment, it has so far managed to garner only Rs 3,000 crore from stake sales in seven PSUs, including Power Grid Corporation of India, Hindustan Copper, National Fertilisers and MMTC.

As per the road map, a 10 per cent stake sale in IOC and EIL each is expected to yield Rs 5,000 crore and 500 crore, respectively.

It also proposes to mop up Rs 3,000 crore from a 10 per cent stake sale in HAL and Rs 2,000 crore from a 5 per cent stake sale in BHEL. The other major PSUs on the block include Coal India and RINL.

Disinvestment in companies has been delayed because of differences between finance and administrative ministries over valuation and timing.

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