Budget 2013-14: FY14 disinvestment target likely to be around Rs 30,000 cr

The government has finally got its cash registers ringing on account of disinvestment but it may yet fall short of the Rs 30,000 crore divestment target. With less than a month to go for the Budget, CNBC-TV18’s Aakansha Sethi reports on what is next on the divestment agenda.

Govt likely to miss FY13 fiscal deficit target: Fitch arm In close to two months, the government has managed to achieve 73% of its Rs 30,000 crore divestment target. The Hindustan Copper, NMDC and Oil India issues have got the government close to Rs 10,000 crore. The National Thermal Power Corporation (NTPC) issue today with a cut off price of Rs 145.55, a little above the floor price of Rs 145  will get the government Rs 11,469 crore taking the total tally to close to Rs 21,500 crore. There is likely to be no more disinvestment in February, the next issue will be National Aluminium Company Limited (NALCO) in mid March. The government is keen to push Steel Authority of India Limited (SAIL) through, but the Sail management is opposing this since the forthcoming results will not bear good news. Sail could get the government close to Rs 2,700 crore and Nalco could get close to Rs 1000 crore, hence the total divestment receipts in FY13 will be between Rs 23,000 to Rs 25000 cr. Minerals & Metals Trading Corporation (MMTC)  is likely only in the next fiscal and Rashtriya Chemicals and Fertilizers (RCF)  will get the government only about Rs 300 cr. However, the finance ministry has already started work on the pipeline for next year. Unlike the last two years, divestment will start from the first quarter itself. Coal India, Nuclear Power Corporation and Hindustan Aeronautics are the prime candidates. The target for FY14 is also likely to be around Rs 30000 cr.