Encouraged by the response of foreign investors to PSU stake sale, the government is proposing to raise the disinvestment target to Rs 40,000 crore in the next financial year by selling equity in 20 companies that include Coal India, IOC, Power Grid Corporation, among others.
It is pertinent here that the Union Cabinet has already accorded its approval for disinvestment in Bhel, Neyveli Lignite, Hindustan Aeronautics.
“As per the discussion within the department of disinvestment (DoD), initial estimate is that next year’s target will be somewhere around Rs 40,000 crore,” official sources said.
So far this fiscal, the government has raised Rs 21,500 crore as against the target of Rs 30,000 crore. DoD Secretary Ravi Mathur has already said that government will try to raise Rs 27,000 crore this fiscal ending March.
The DoD has already identified 20 companies for offloading minority stake in the 2013-14 fiscal.
Sources said work is already in progress for minority stake sale in the next fiscal and DoD officials are meeting the administrative ministries and company officials for executing it. Amongst the companies which have been identified for disinvestment next fiscal include Coal India, Indian Oil, PGCIL, NHPC, National Electric Power Company (Nepco) and THDC. Also, the second tranche of Hindustan Copper (HCL) is also likely in the April-June quarter.
Buoyed by the resounding success of Oil India and NTPC disinvestments earlier this month, the government expects that an early start to divestment process next financial could help in garnering more funds.
Besides, 10 per cent stake sale in OIL fetched Rs 3,141 crore and 9.5 per cent in NTPC garnered Rs 11,496 crore. Stake sale of Nalco, MMTC, SAIL and Rashtriya Chemicals and Fertilisers (RCF) is also scheduled for current fiscal.