Divestment roadmap: Govt on track to raise Rs 30Kcr in FY10

The government's divestment plans are completely on track. It plans to raise close to about Rs 30,000 crore from stake sale in PSU firms. CNBC-TV18's Akansha Sethi reports.

The government is looking at proceeds of about Rs 25,000 crore from the four issues that are hitting the markets in these two months.

NTPC has got about Rs 8,500 crore. NMDC, which is going to hit the market in the second week of March, would be about another Rs 14,000 crore and REC, which hits the markets on February 19, would be another Rs 1,000 crore. The rest would come in from Sutlej.

Earlier, NHPC and Oil India had got Rs 5,000 crore. So that takes the total proceeds for FY10 to Rs 30,000 crore. The overseas meets for REC and NMDC are on.

After NTPC rather tepid response there had been questions on whether the government should reconsider the French Auction method, which is what the experts have been saying, but sources say that right now there are no plans to reconsider the French Auction method. In fact, REC and NMDC are going to go ahead as French Auctions itself.

Also, there are no plans as yet to offer any bigger discounts for the retail segment. The retail subscription in NTPC had been poor. Sources say the employee subscription maybe tweaked a little bit.