Difficult to meet FY14 divestment target: Fin Min Sources

Finance Ministry sources told CNBC-TV18’s Aakansha Sethi that the ministry now believes it will be difficult for the government to meet FY14 divestment target because most of the companies and ministries that were scheduled to go ahead with disinvestment are absolutely refusing to come onboard.

Remember, the government has set a target of raising Rs 54,000 crores via selling its stake in public sector companies during the current fiscal. Also Read: Vedanta hopeful of govt taking Rs 21,600 cr divestment bait Indian Oil and the Oil Ministry have said no to an offer for sale (OFS) and that was one of the government’s key issues. Similarly, for Coal India, its union and the Coal Ministry are not onboard. Hence, the government is looking at a buyback or a special dividend for CIL. These were the two big issues that were supposed to happen this year and now there is a question mark over both of them. The government is now relying on the NHPC buyback, which it expects over the next 40-50 days, the Power Grid follow on public offer (FPO) which is likely in November and perhaps sale of Axis Bank portfolio in the SUUTI, which it will have to count on for meeting its disinvestment target. Also, the PSU ETF basket is currently being finalised and that is likely to be done by January. The top 10 PSU companies such as ONGC, IOC, NMDC are likely to form part of that ETF basket.