News Column

Govt to take divestment plunge for economic revival

July 11, 2014

FINANCE minister Arun Jaitley is banking on raising 58,425 crore from disinvestment of government shares in both public sector and private sector companies which is three times the figure of `19,000 crore mobilized through this route in 2013-14.

Jaitley has increased the estimate for the amount that the government expects to mobilize via sale of shares in public sector companies to `43,425 crore which is `7,500 crore higher than the estimate of `36,925 crore that P. Chidambaram mentioned in the interim budget.

However, in 2013-14 the UPA government had managed to raise only `16,027 crore through this route as the markets did not have the appetite to absorb such a large number of shares. Another `15,000 crore under the disinvestment head is expected to come from the sale of government shares held in private companies.

This is the same as Chidambaram's figure in the interim budget presented in February.

In 2013-14 the government had raised `3,000 crore under this head.

While a 5 per cent stake sale in SAIL is on the cards, the disinvestment department is also looking at 10 per cent stake sale in Coal India.

Also a Cabinet note has been floated for a 5 per cent stake sale in ONGC which could fetch `17,000 crore.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Mail Today (India)

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