Encouraged by today's mega success of 10 per cent stake sale in Coal India, the government is likely to put on block its shares...
Encouraged by today’s mega success of 10 per cent stake sale in Coal India, the government is likely to put on block its shares in other blue-chip firms ONGC, IOC and NHPC in the remaining two months of the fiscal to meet disinvestment target of Rs 43,425 crore.
The exchequer today netted Rs 22,557.3 crore from disinvestment in Coal India (CIL).
The government is racing against time to raise funds from stake sale in PSUs to meet the 4.1 per cent fiscal deficit target for 2014-15 financial year. The fiscal deficit has already overshot the budget estimate by December-end.
Before CIL, the government had off-loaded 5 per cent of its stake in steel major SAIL, garnering Rs 1,719 crore in the current fiscal.
In September 2014, along with Coal India, the Cabinet had approved disinvestment in ONGC and NHPC.
The government has already selected merchant bankers for managing ONGC and NHPC disinvestment.
The government plans to offer 5 per cent of paid-up capital in ONGC and 11.36 per cent in hydro power generator NHPC.
Besides, the government has started process for disinvestment in several other PSUs, like NMDC, NALCO, BHEL, DCIL, PFC and REC.
The government has missed its disinvestment target for five consecutive financial years.
In 2010-11 and 2011-12 fiscals, the government had raised Rs 22,144 crore and Rs 13,894 crore through disinvestment, against the budgeted target of Rs 40,000 crore in each year. In 2012-13, it had raised Rs 23,956 crore, as against the target of Rs 30,000 crore.
In the budget, the government had proposed to sell its residual stake in Hindustan Zinc and Balco to raise Rs 15,000 crore.