New Delhi: Finance Minister Arun Jaitley is likely to announce an ambitious Rs 45,000 crore disinvestment target for the FY16 during his 2015 Union budget.
The move is expected to allow him to keep the fiscal deficit on a tight leash while finding the money needed for a public spending push.
According to a report published in Economic Times, it is expected that the Narendra Modi administration will seek an early start to the disinvestment programme by lining up about 10 share-sale initiatives, including IPOs although the overall target could be higher after including residual stake sales.
Companies which could be included in the list are Container Corporation of India (Concor) and Ircon International.
According to the ET report, a government official privy to the discussions going around says that the target for the year could be in the range of Rs 40,000-45,000 crore.
The official, on the grounds of anonymity, also said, “We are in talks with various administrative ministries and in the process of identifying companies.”
"Cabinet approvals for some firms have already been taken. Unlike the last few years, the next fiscal disinvestment process will start as early as April itself”, he added.
Stake sales have already been approved in some of the companies like PFC, REC, NHPC and ONGC. Others like – IOC, BPCL, NMDC Ltd, Nalco, BHEL, Dredging Corporation of India and National Buildings are expected to follow the league soon.
The official further told that IPOs of HAL (Hindustan Aeronautics Ltd) and RINL (Rashtriya Ispat Nigam Ltd) are also being looked at for a disinvestment of 10% stake each. Similar plans are there for railway PSUs – Ircon and Concor also.
Jaitley is reportedly targeting to raise Rs 43,425 crore from the sale of stock in state-owned companies in FY15 with another Rs 15000 crore pegged to come from residual stake sales.
In the remaining month and a half of the current fiscal year, the government is expected to kick off a few more offers, taking disinvestment proceeds to an all-time high.
According to experts said it will be difficult for the government to meet the disinvestment target unless it puts stock in the big state-owned companies on sale.
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