Govt mulls buyback as weak mkt hits PSU divestment plans

The current volatility in the market is forcing the government to go ahead with its plans of divestment. The main public sector units (PSUs) that may be considered for buybacks are NMDC, NTPC, NHPC, and Coal India, reports CNBC-TV18’s Aakansha Sethi.
 
Coal India board has already given its nod for a buyback. Other companies are yet to give their approval for the same. The impact of this step will be directly on their balance sheets and their valuations. 

Also read: Falling markets spell trouble for govt's divestment plans India has seen a tough time to sell stake in PSUs. Coal India’s 10 percent stake sale was to fetch the exchequer Rs 25000 crore. This is now likely to be only five percent. Indian Oil (IOC) divestment plans may be delayed with the current pressure on oil marketing companies (OMCs) due to the depreciation in the rupee. The market volatility it makes it even more difficult for the government to go ahead with any divestment issue. So, the government is now looking at the option of buybacks. The government, in its budget this year, had targeted to raise Rs 40,000 crore through sale of stake in various public sector units (PSUs).