The government has won half the battle, successfully off-loading 10% stake in Coal India on Friday, helping the Centre reach the half way mark in its FY15 stake sale target of R43,425 crore.
The Centre raised R1,719.20 crore from SAIL auction in December and is assured of at least R23,000 crore from the CIL stake sale on Friday. Apart from CIL, the Centre has lined-up disinvestment in an additional seven-eight companies as well as the CPSE exchange traded fund (ETF) that will help the government garner upward of R27,000 crore.
The government has completed all formalities for Power Finance Corp (R1,900 cr) and Rural Electrification Corp (R1,700 cr), and will soon launch the deals. The Centre has initiated the process to conduct sale in Indian Oil (R8,200 cr), NMDC (R5,600 cr), BHEL (R3,400 cr), and Nalco (R1,200 cr) among others.
Success of CIL’s auction positions the Centre to achieve its disinvestment target for the first time since FY04. Finance minister Arun Jaitley has recently indicated that the government has lined up an aggressive disinvestment programme to meet the fiscal deficit target of 4.1% in the current fiscal.
“We still have close to three months left…this is going to be period of great activity as far as disinvestment is concerned. I am not going to give any indication but major disinvestment in the coming months prior to March 31 is going to take place,” Jaitley said in a TV interview.