Govt may lower disinvestment targets for current fiscal

Government cautious as market mayhem plays out over global uncertainty

PTI | August 8, 2011



The government today indicated it may lower the Rs 40,000 crore disinvestment target for the current fiscal in view of the recent bloodbath in the stock markets on account of global uncertainty.

"It is difficult to say, if the the current target will remain intact or revised," Disinvestment Secretary Mohammed Haleem Khan told reporters here when asked if the government is contemplating to lower the disinvestment target for the current fiscal.

As against the ambitious target of raising Rs 40,000 crore from sale of shares of the state-owned enterprises, the Government has so far raised a little over Rs 1,144 crore by offloading stake in the Power Finance Corporation.

Following the downgrade of sovereign credit rating of the US to AA+ from AAA by Standard and Poor's, the BSE Sensex plunged to below 17,000 mark during the intra-day trade before reducing losses.

"There are a few companies in the pipeline for disinvestment, but it is difficult to say when. We have a set of professional advisors to advise us on disinvestment," Khan said, adding the government is monitoring the situation.

A senior official in the Disinvestment Department had earlier said that the government hopes to raise a little over Rs 15,000 crore through share sale of PFC, SAIL, ONGC and HCL. PFC follow-on offer hit the market in May.

RINL, MMTC and NBCC was also on the government's radar for disinvestment but the current financial turmoil may prompt the government to postpone equity sale.
 

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