Riding on the back of expected HPCL-ONGC deal, the government is eyeing to end FY18 with record disinvestment receipts of over Rs 90,000 crore as against the Budget target of Rs 72,500 crore. It is almost the double of over Rs 46,000 crore recorded last year.
Riding on the back of expected HPCL-ONGC deal, the government is eyeing to end FY18 with record disinvestment receipts of over Rs 90,000 crore as against the Budget target of Rs 72,500 crore, media sources reported. It is almost the double of over Rs 46,000 crore recorded last year. However, the exact amount to be raised after stake sale in HPCL is still uncertain. The deal, if finalized by March this year, should raise over Rs 30,000 for the government.The fiscal deficit reached Rs 6.12 trillion or 112% of the full-year budget during eight months to November. In less than a month of announcing additional market borrowings of Rs 50,000 crore for the fiscal year ending March-18, the government announced on Wednesday that it has cut its requirement to Rs. 20,000 crore from Rs 50,000 crore estimated earlier. After this news, Sensex touched 35,000-levels for the first time ever. Markets have extended the record-breaking rally on Thursday with Sensex and Nifty opening at fresh records after hitting new milestones in yesterday’s trade. BSE Sensex gained as many as 394.88 points to hit a lifetime high of 35,476.7 while NSE Nifty added 98.55 points to mark the record high of 10,887.1 on Thursday. It’s most probably the deal may fuel positive sentiments in the markets if closed this fiscal year.
The Core Group of Secretaries on Disinvestment (CGD) headed by the Cabinet secretary has approved the broad contours of Oil and Natural Gas Corporation’s proposed acquisition of the government’s 51.11 percent stake in Hindustan Petroleum Corporation, paving the way for the transaction later this month, The Financial Express had reported on January 10.
DIPAM’s data showed that as on January 02, 2018, the government has achieved Rs 32,321.92 crore from CPSE disinvestment compared to their target of Rs 46,500 crore. While Rs 4,153.65 crore has been achieved from strategic disinvestment so far in FY18 compared to their target of Rs 15,000. It was only listing of insurance companies that overshoot the disinvestment target of Rs 11,000 crore this fiscal. The government has raised about Rs 17,357.48 crore from this mechanism with the listing of The New India Assurance Company Limited and General Insurance Corporation Of India. The government has thus raised about Rs 53,833.05 crore – which would be over 74 percent of disinvestment target.