Govt to sell PSU stakes when market conditions improve

GN Bureau | December 1, 2015



Government will sell stake in some state-owned companies, especially those in metals business, only when market conditions improve, finance minister Arun Jaitley.

Government has a pipeline of over 20 PSUs for offloading part stake during the current fiscal for which it already has the Cabinet approval. They include, 10 per cent stake sale each in OIL, Nalco, NMDC, and 5 per cent each in NTPC , ONGC, BHEL. Besides, plans are afloat for 10 per cent stake sale in Coal India Ltd.

However, volatile market conditions have dented the prospects of a stake sale, with the recent disinvestments of IOC and PFC facing rough weathers.

But there are concerns that the Rs 69,500 crore disinvestment targets for the current fiscal may be missed.

The government has budgeted to raise Rs 69,500 crore through disinvestment in 2015-16. Of this, Rs 41,000 crore is to come from minority stake sale in PSUs and the remaining Rs 28,500 crore from strategic stake sale.

With eight months of the current fiscal about to be over, the government has been able to sell stake only in four companies PFC, REC, Dredging Corp and IOC to net Rs 12,600 crore.

Although the government has missed its divestment target for five years in a row, the target for the current fiscal, 2015-16, was set at a massive Rs 69,500 crore - 180 per cent higher than the total amount garnered from PSU share sales in the previous fiscal.

"I have already said there are few stocks, especially metal stocks, which are down globally. Therefore, in such circumstances it would not be appropriate to sells such stocks in the market," Jaitley said after a meeting with the heads of public sector banks in New Delhi. “We will sell such stocks after market condition improves," he said.

Comments

 

Other News

Hydro engineering college to come up in Himachal

 Prime Minister Narendra Modi has laid the foundation stone of hydro engineering college at Bilaspur in Himachal Pradesh. The college, being set up by National Thermal Power Corporation (NTPC) and NHPC, will provide B Tech courses in mechanical, electrical, civil and computer science discipl

BHEL commissions 3MW solar plant in Dadra & Nagar Haveli

 Bharat Heavy Electricals Limited has commissioned a three Mega Watt solar photo voltaic power plant in Dadra and Nagar Haveli.  BHEL executed this project on a turnkey basis for Dadra and Nagar Haveli power distribution corporation limited at Velugam.   It

Back to the drawing board: Kejriwal

Time to go back to the drawing board, said Delhi chief minister and Aam Aadmi Party leader Arvind Kejriwal on Saturday, days after his party failed to make its mark in the Delhi civic elections.   In a message, Kejriwal said that in the last 2 days, I spoke to many vo

Grasp the nettle by taxing rich farmers

  The tax net needs to be expanded and the rich farmers must pay up their taxes. This week saw quite a bit of going back and forth over this prickly issue after Niti Aayog member Bibek Debroy batted for taxing agricultural income.   Niti Aayog vice chairman A

Attention to NTDs, dream of an equal, accessible internet and the struggles of CIC

  A giant yellow inflatable schistosomiasis worm, with ‘Making Schistory’ printed on it, floated on Lake Geneva, marking the five years since the London Declaration on neglected tropical diseases (NTDs). Though in 2015 about 1.59 billion people received treatment for at least

BBNL, BSNL to provide broadband connectivity to 1.3 lakh rural post offices

In order to provide broadband connectivity of BharatNet to post offices in rural areas, Bharat Broadband Network Limited (BBNL), department of posts and Bharat Sanchar Nigam Limited (BSNL) have signed a tripartite agreement.   The agreement is the first tri-partite MoU which



Video

शहीदों के लिए आगे आये आईएएस अफसर

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter