By Abhijit Neogy, CNBC-TV18

Disinvestment seems to be back on the agenda and this even before the UPA won the trust vote. Sources say the Finance Ministry had asked the Department of Disinvestment to prepare a list of PSUs where the government could offload part of its stake.

Sources said the Finance Ministry has been given an in-principle approval to consider offloading stakes in all profitmaking PSUs and even navratnas. Faced with severe fiscal pressure thanks to schemes like the farm waiver, the Pay Commission and the cost of fighting inflation, the government is faced with a gaping hole of Rs 1,26,000 crores. Faced with severe fiscal pressure, the Finance Ministry hopes to start the divestment process and garner funds upwards of Rs 20,000 crore to relieve some of the fiscal pressure.

There are 16 navratna companies at present including big boys like SAIL, ONGC, NTPC and OIL where the government still holds more than 75% of the shareholding. Sources say the Department of Disinvestment has been asked to evaluate options of selling 5 to 10% stake in most companies.

First off the block may be hydro major NHPC, upstream major OIL as well as the FPO of power major NTPC. But the Finance Ministry is in a dilemma. Senior Finance Ministry officials believe that the current market mood may not fetch attractive valuations. Though a firm timeline is yet to be drafted for these high profile stake sales, the government is eager to ensure that most of its stake sales are completed within this fiscal.

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